America II Electronics has announced that its memory inventory has been placed on allocation. In response to the fire at the SK Hynix facility in Wuxi, China which is responsible for approximately 15 percent of the world’s DRAM wafer production, the company moved to protect its current customer base by preventing others from exhausting America II’s memory inventory.
“Over the past several months, we’ve seen a significant increase in our OEM base,” said Brian Ellison, President of America II Electronics. “We’re committed to each and every one of those customers, and will stay focused on delivering the best solutions and services. To do that, we needed to take a preemptive approach to our inventory position. The supply chain has been disrupted. In reaction to the tragic fire that recently took place at the SK Hynix manufacturing facility, we felt the need to protect those customers by placing all DRAM and NAND flash inventory on allocation.”
As manufacturers stop providing quotes as a result of the fire in China, America II is also taking a preventative measure. This precaution will assure its customers that they will have priority access to America II’s inventory.
“We see a lot of people relying on the independent channel these days,” added Ellison. “It’s a multi-billion dollar channel and the demand is high. So at this time, it’s important that America II secures its memory inventory for its existing customers. Placing product on allocation was done for that purpose. Going forward, we will monitor the situation and lift the allocation once we see normalcy.”
Joe Stern, America II’s Product Manager responsible for its global memory inventory, is analyzing market conditions and working to restore the company’s product pipeline. “This is a global situation. Manufacturers stopped quoting, so we’re working around the clock to limit the impact it has on our customers and avoid short- and long-term service interruptions,” he said.