A few friends have asked me whether the strike at Micron is bullish for the memory sector. My answer is that it should b | Hanami
A few friends have asked me whether the strike at Micron is bullish for the memory sector. My answer is that it should be good news for Samsung and SK hynix, but it’s likely bad news for Micron.
You’re probably thinking I’m stating the obvious. But when an SK hynix fab caught fire back in the early 2010s, SK hynix itself actually benefited significantly. DRAM prices were so low at the time that the gains from the resulting surge in memory ASPs more than offset the losses caused by the fire.
This time, though… memory ASPs aren’t particularly low, and for Micron, the opportunity cost of the strike looks likely to outweigh any potential upside.