Power outage at Samsung’s Texas chip plant caused $270 million damage
Samsung Foundry’s chip plant in Austin, Texas, suffered a huge loss due to a power outage in February. The company had to stop the production of chips for over a month, which isn’t good news, especially considering the ongoing global chip shortage. The South Korean firm had to destroy some of its products which were being fabricated when the power outage happened, causing damage of millions of dollars.
During its Q1 2021 earnings call, the company revealed that it faced damages to the tune of KRW 300 billion (around $270 million) to KRW 400 billion (around $360 million). A major snowstorm and cold wave in Texas caused statewide power and water outages, and Samsung and other companies in the state had to stop their chip production facilities. It was the first time in Samsung’s history that it had to close the chip production for a month.