Western Digital Corp announced that there was a contamination of certain material used in its manufacturing process which has affected at least 6.5 exabytes, or more than 6.5 million terabytes, of flash storage. As a result, there could be supply shortages and price increases for flash memory.
“The company is working closely with its joint venture partner, Kioxia, to implement necessary measures that will restore the facilities to normal operational status as quickly as possible,” wrote Western Digital Corp in a statement.
Western Digital and Kioxia are some of the world’s leading SSD suppliers, and their joint production accounts for around 30% of the NAND flash market. And according to TrendForce, the contamination can cause the price of NAND to go up by 10%.
“Flash memory prices will rise for sure, further adding fuel to the recent component price hike trend stemming from supply shortages,” said Ace Research Institute analyst Hideki Yasuda.
Flash memory is a crucial component found in nearly every modern gadget, including smartphones, computers, digital cameras, and modern cars. A substantial price hike could have a direct impact on consumer products, just as laptop and desktop makers are refreshing products in the wake of new processors.
It’s currently not clear how the contamination happened, but it was first discovered late last month—affecting production operations at both its Yokkaichi and Kitakami joint venture, flash fabrication facilities. However, Western Digital said its currently working towards resuming production at its facilities.
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