Samsung has misplaced greater than 300 billion received or round $270 million after it shut down its semiconductor plant in Austin, Texas.
Speaking at a convention name, senior vp at Samsung’s foundry enterprise Han Seung-hoon stated that the shutdown affected greater than 71,000 wafers, which resulted to 300 to 400 billion received in harm.
Samsung’s $270 Million Loss
According to Yonhap News, the assertion made by Han Seung-hoon coincided with Samsung’s newest earnings launch, in which it reported sturdy gross sales of its smartphones and different client electronics.
The South Korean tech large was pressured to close down its Austin, Texas plant, which produces microprocessors such as strong state drive controllers and radio frequency built-in circuits, again in February after a storm left some 200,000 Austin properties with out energy.
Also Read: Intel Takes Advantage of AMD Chip Shortage, Cuts 10th-Gen Comet Lake Prices
The shutdown lasted for a month, which is the longest Samsung has ever needed to halt manufacturing at a manufacturing unit. But the firm says that the plant was again as much as 90% manufacturing at the finish of March, and it’s now as much as its regular ranges.
According to The Financial Times, Samsung income had exceeded expectations. The internet revenue for the quarter was up 46% to 7.1 trillion received or round $6.four billion in comparison with the identical quarter in 2020, ensuing in the firm’s highest first quarter revenue since 2018.
The enhance was pushed by a 66% surge in income at its cellular division, in keeping with a report by CNBC.
Samsung said that the gross sales of its nicely acquired flagship Galaxy S21 sequence have elevated along with the extra worth aggressive midrange fashions.
Samsung’s personal manufacturing points have been partly due to the global chip shortage that has affected all the things in the tech business, from graphics playing cards, automobiles, cellphones to toasters.
Samsung says that the provide points have had devastating results on its enterprise and it contributed to a sudden drop in gross sales for cellular shows in the first three months of 2021.
The firm says it’s doable that offer points will proceed into the second half of the yr, however that its strengthening cooperation with the in-house foundry and increasing the use of outsourced foundries to compensate.
Samsung thinks its enterprise will profit from financial recoveries and stimulus packages round the world. It expects sturdy demand for all the things, from servers, to storage, smartphones, and PCs in the second half of the yr.
However, it particularly stated that demand for TVs may drop in the identical time interval, as individuals begin to return to their regular lives.
Global chip scarcity
Bloomberg has reported that the international chip scarcity is reaching disaster ranges.
Ford cancelled shifts at two car plants and stated income might be hit by as much as $2.5 billion this yr on account of chip shortages, whereas Nissan is idling output at vegetation in Mexico and the US. General Motors said it may face a $2 billion revenue hit this yr.
Last month, Sony, together with different console makers, has struggled with inventory shortages over the final yr, and stated it won’t hit gross sales targets for the new PS5 this yr due to the semiconductor provide concern.
Microsoft’s Xbox has stated it forecasts provide points persevering with at the least till the second half of 2021.
Related Article: Amid Chip Shortage: Ford Augments Plant Shutdowns Next Month; Operating Profit to be Disrupted this Year
This article is owned by Tech Times
Written by Sophie Webster
ⓒ 2021 TECHTIMES.com All rights reserved. Do not reproduce with out permission.
