Micron Technology ($Micron Technology, Inc. MU$) is evaluating operations at its Taiwan subsidiary following a 7.2 magnitude earthquake on the island.

As Micron's DRAM production is heavily concentrated in the Taiwan region, the company has halted DRAM price quotations and will restart negotiations for 2Q24 contract prices after assessing the damage. Meanwhile, SK Hynix also paused quotations, despite not having DRAM production in the region, opting to wait and see. Samsung has yet to make concrete 2Q24 quotes, suggesting a delay in pricing schedules.

The April 3 earthquake in the region could affect memory markets in several ways:

1. Contract and spot pricing changes are closely tied to Micron's post-earthquake assessment in Taiwan.
2. 2Q24 DRAM contract pricing has temporarily stopped.
3. DRAM spot prices may see a slight rise soon.
4. The earthquake may delay 2Q24 pricing, especially for DRAM.

Despite weakened demand in the spot market for DRAM and NAND Flash in the past few weeks, which has kept prices stable even after the earthquake and production halts at Micron and Nanya, TrendForce predicts a slight increase in short-term DRAM spot prices. The continuation of this trend and whether it indicates a broader market impact remains to be seen. Suppliers are currently pausing quotations, likely leading to module manufacturers adopting similar wait-and-see approaches.

Read more:

1. TSMC Hit by Magnitude 7.2 Earthquake: $60M Impact, Guotai Research Report
2. April 3 Earthquake Could Impact GPU Prices: Analysts