Samsung had to temporarily shut down the US chip plant in Austin, Texas. After heavy snowfall in Texas, the South Korean firm was ordered to completely shut down its factory and stop producing chipsets. Along with chip shortages, such power outages could cost millions of dollars to the company.
According to the report, Texas officials ordered the closure of factories that not only affected Samsung, but also NXP Semiconductors and Infineon Semiconductors. A 30-minute power outage at Samsung’s factory in 2018 reduced the global supply of NAND chips. Last month, an unplanned power loss occurred at the company’s Hwaseong chip plant, and it took Samsung several days to regain power and continue chip production at full capacity.
Samsung is said to have millions of dollars of dice due to a power outage at the Texas chip factory. With the recent shutdown of Samsung’s chip factory in Texas, some products could be destroyed, causing millions of dollars in damage to the company.
It is still unclear whether Samsung has been given enough time to prepare for the power outage. Some chip types can take a month or more to go through several fabrication steps, and another power outage can cause the entire line to fail. Although factories have backup power systems, they are generally designed for short-term power outages. However, this downtime takes a long time due to the snowfall.
In the face of the ongoing global chipset shortage, Samsung’s chip factory shutdown is bad news. Samsung started its fabrication factory in Austin in 1996. The company added a second factory in 2007 and expanded in 2017. Not everyone knows what chips he makes at the Austin plant, but DRAM, NAND, and mobile SoC are all part of the production. No date has yet been given for the company to restart chip production.
Samsung is currently planning to build another semiconductor chip factory in Austin. The company is said to invest up to $ 17 billion in the new facility and create around 1,800 jobs. If all goes according to plan, the facility could start by focusing on 3nm MBCFET chips in 2023.