Micron Technology stock is trading higher. A Taiwan earthquake impacted production at the company’s DRAM plant in Taoyuan, and investors see prices rising.
Dreamstime
Micron Technology stock is trading higher Monday after an earthquake in Taiwan has impacted production at the company’s DRAM plant in Taoyuan.
According to the U.S. Geological Survey, the island experienced an earthquake of magnitude 6.2, centered 21 kilometers south-southeast of Yilan, about an hour’s drive from Taoyuan.
Micron (ticker: MU) said in a statement that all of its staff in Taiwan are safe. “The earthquake caused impact to production at our facilities in Taoyuan,” the company said. “Micron is evaluating the impact and determining the appropriate steps to return to full production.”
Micron stock on Monday is up 2.2% to $68.97.
Wells Fargo chip analyst Aaron Rakers wrote in a research note Monday that the Taoyuan plant accounts for 35% of Micron’s DRAM production, and 9% of total global DRAM capacity.
Investors are bidding up Micron stock on the news, apparently on the thesis that a prolonged shutdown could boost prices on DRAM, which are used in personal computers, mobile phones and other electronic devices. The DRAM market is dominated by three companies, including Micron, Samsung, and SK Hynix.
Write to Eric J. Savitz at [email protected]
