China-based white-box smartphone and tablet manufacturers will have to encounter rising costs of buying DRAM chips if SK Hynix' fire-damaged plant fails to restore full production in the short term, according to industry sources.

　　China's white-box smartphone and tablet makers currently hold sufficient DRAM inventory to satisfy their short-term demand, said the sources. However, if the memory shortages persist, those white-box makers will have less bargaining power and end up accepting higher quotes offered by chip suppliers.

　　Brand smartphone and tablet companies, such as Apple and Samsung Electronics, should be less affected than China's white-box players amid DRAM shortages as they generally have more bargaining chips, the sources indicated. Samsung, which is also a DRAM maker, can choose to make it a top priority to meet demand for its own mobile devices, the sources said.

　　A rally in DRAM prices could also discourage system OEMs from raising memory content per box in their products, the sources noted.

　　Chipmakers Samsung and Micron Technology have quoted their September contract prices at about US$32, while SK Hynix' offering is relatively low at US$30, the sources disclosed.

　　A fire that broke out at SK Hynix' Wuxi, China fab in early September has led to an about 40% rise in DRAM spot prices. SK Hynix has said that the company expects to resume production at its fire-hit plant sometime in October.