SK Hynix' DRAM supply continues to be short of demand from its PC OEM clients, which have turned to other suppliers to keep safety stock on hand, according to industry sources.

　　SK Hynix' DRAM supply has been constrained following a fire at its China fab in early September. The firm said previously that it would significantly increase production capacity for DRAM products at its fabs in South Korea, by allocating more capacities meant originally for the manufacture of NAND flash to DRAM chips.

　　However, SK Hynix has still seen its overall DRAM supply fall short of customer demand, due to unsatisfactory yield rates in the transition from NAND flash to DRAM production, the sources indicated.

　　As a result of SK Hynix' continued tight supply, contract prices for DRAM memory are set to stay high or even rise slightly in January 2014, the sources noted. Prices are unlikely to drop prior to the Lunar New Year holidays in late January 2014, the sources added.

　　SK Hynix's China plant has a monthly capacity of 130,000 wafers to mainly produce DRAM chips for PCs and servers.

　　SK hynix said it has resumed full operation at the Wuxi fab since November as planned.