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  • 3 days ago
Surging memory chip prices spark supply crunch in China
Transcript
00:00In China, a rally in memory chip prices that's been ongoing since September has ignited a
00:12scramble among downstream players to stockpile inventory, which is pushing chip makers to
00:18supercharge production. The production manager of a chip module manufacturer in South China's
00:24Guangdong province says they've doubled production capacity but are still falling short of demand.
00:30We've added more than 10 new machines, doubling our daily output from 100,000 to 200,000 units.
00:37But even with round-the-clock operations across three shifts, we're still falling behind demand.
00:43The surge in downstream demand has also tightened the supply of wafers, the raw material used to
00:50make chips. Instead of hunting for buyers, the company's general manager now spends his days
00:56negotiating with upstream wafer suppliers. We're also facing a shortage of raw materials,
01:03so we've had to turn down many orders. Memory chips are vital components that provide
01:09temporary and permanent data storage for modern electronics.
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