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Flash chip output disrupted, warning over smartphone price hike

Random Access Memory chip (File photo: Reuters)

Operations at two Japanese factories producing flash memory chips have been disrupted by the contamination of industrial materials, chipmaker Kioxia said Thursday, as analysts warned of potential price hikes for the key smartphone components.

It comes as the tech industry grapples with a global semiconductor shortage that has hampered the manufacturing of numerous products from cars to gaming consoles.

Kioxia said it suspected “contamination of materials used in the manufacturing processes”, leading to operations at the plants being partially suspended, but offered no further details.

The company, a spin-off of Japanese conglomerate Toshiba, said it was working to restore full output at the factories in central and northern Japan as soon as…

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