Hynix Semiconductor's memory fabrication plant in Wuxi, China which is responsible for 15 per cent of DRAM capacity, caught fire. Hynix FAB C2, was said to be in better condition after the fire than first reported but several major memory suppliers have may have stopped shipments until they know the full extent of the damage.

Photos showed the FAB facility surrounded by smoke and engulfed in flames. However it seems that the fire was concentrated in the air purification facilities that are linked to the rooftop of the fab.|The company also said in an email reply to Computerworld that there is no material damage to the fab equipment in the clean room, and Hynix expects to resume operations in a short time.

Hynix expects the majority of the damage will be covered by insurance.

The DRAM market is already tight and if the Wuxi fab is down hard (meaning wafers in process are scrapped) then prices could jump. Luckily Hynix insists the damage was minor, although it all looked quite spectacular.