Factory blaze in China reveals vulnerability of global supply chains

09/13/2013 | FoxNews.com

A Sept. 4 blaze at South Korean firm SK Hynix's China facility has shown how unexpected events can have far-reaching effects on global supply chains, analysts say. The incident pushed up global prices of memory chips, as the facility manufactures almost one-sixth of the world's supply of dynamic random access memory chips for tablets, smartphones and personal computers. "Mobile phone producers related to Hynix will surely be affected, but shipments will gradually [stabilize] as other suppliers in the global supply chain will come in and fill the gap," said Wang Jun of consultancy firm Analysys International.

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