Samsung's US Austin Factory Restart to Take at Least One More Week

[Asia Economy Reporter Suyeon Woo] It is projected that it will take at least another week from now for Samsung Electronics' Austin plant, which halted its production lines due to record-breaking cold weather in the United States, to resume operations. The production stoppage is expected to cause up to a 2% impact on global 12-inch wafer foundry output, and in the long term, there are concerns about a potential price increase for solid-state drives (SSD).

On the 21st (local time), market analysis firm TrendForce stated, "Considering that the Austin foundry plant (S2) line has been preparing to resume operations since the 19th and power restoration is gradually progressing, it is expected to take at least one more week to fully restart."

Samsung Electronics' Austin plant has been shut down since 4 p.m. on the 16th, marking six consecutive days of halted operations. The record cold snap in the U.S. caused shortages in power and water supply in the Austin area, making it difficult for the large local plant to operate smoothly. If it takes at least one week from now to resume, the shutdown at the Austin plant will extend beyond ten days, resulting in estimated losses in the range of 100 billion KRW.

Due to a record-breaking cold wave, power and water supply were cut off in Houston, Texas, USA, on the 18th (local time), and local residents are drawing water from a faucet in Haden Park. In Texas, water supply to 12 million people was interrupted due to the shutdown of water treatment plants and burst water pipes caused by the cold wave. Photo by AP/ Yonhap News

Located in Austin, Texas, the plant produces power management integrated circuits (PMIC) for IT devices and communication semiconductors using 14nm (1nm = one billionth of a meter) process technology. It also manufactures automotive semiconductor chips for companies such as Tesla and Renesas, so this production halt could affect semiconductor supply for various products including automobiles and IT devices.

In particular, Samsung Electronics' Austin foundry plant accounts for 5% of the global 12-inch wafer foundry production. TrendForce forecasts that this shutdown will cause a 1-2% impact on global 12-inch wafer foundry output. Additionally, since the plant produces 14-40nm NAND flash and SSD controllers, a long-term increase in SSD prices is also anticipated. Next-generation large-capacity storage devices like SSDs require essential components such as NAND flash and SSD controllers.

A Samsung Electronics official said, "We have dispatched technical staff to the site to check the power and water supply situation, but no specific plan for resuming operations has been decided yet. Besides the availability of power and water, inspection of production line equipment is also necessary."

This content was produced with the assistance of AI translation services.