Samsung has misplaced greater than 300 billion gained or round $270 million after it shut down its semiconductor plant in Austin, Texas.
Talking at a convention name, senior vice chairman 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 gained in injury.
Samsung’s $270 Million Loss
In accordance with Yonhap Information, the assertion made by Han Seung-hoon coincided with Samsung’s newest earnings launch, through which it reported sturdy gross sales of its smartphones and different client electronics.
The South Korean tech big was compelled to close down its Austin, Texas plant, which produces microprocessors comparable to 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.
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The shutdown lasted for a month, which is the longest Samsung has ever needed to halt manufacturing at a manufacturing facility. However the firm says that the plant was again as much as 90% manufacturing on the finish of March, and it’s now as much as its regular ranges.
In accordance with The Monetary Instances, Samsung income had exceeded expectations. The web revenue for the quarter was up 46% to 7.1 trillion gained or round $6.4 billion in comparison with the identical quarter in 2020, ensuing within the firm’s highest first quarter revenue since 2018.
The rise was pushed by a 66% surge in income at its cell division, in line with a report by CNBC.
Samsung acknowledged that the gross sales of its nicely obtained flagship Galaxy S21 collection have elevated along with the extra worth aggressive midrange fashions.
Samsung’s personal manufacturing points have been partly as a result of world chip scarcity that has affected the whole lot within the tech trade, from graphics playing cards, automobiles, cellphones to toasters.
Samsung says that the availability points have had devastating results on its enterprise and it contributed to a sudden drop in gross sales for cell shows within the first three months of 2021.
The corporate says it’s potential that offer points will proceed into the second half of the yr, however that its strengthening cooperation with the in-house foundry and increasing using outsourced foundries to compensate.
Samsung thinks its enterprise will profit from financial recoveries and stimulus applications world wide. It expects sturdy demand for the whole lot, from servers, to storage, smartphones, and PCs within the second half of the yr.
Nevertheless, it particularly stated that demand for TVs may drop in the identical time interval, as folks begin to return to their regular lives.
World chip scarcity
Bloomberg has reported that the worldwide chip scarcity is reaching disaster ranges.
Ford cancelled shifts at two automobile vegetation and stated income may very well be hit by as much as $2.5 billion this yr attributable to chip shortages, whereas Nissan is idling output at vegetation in Mexico and the US. Normal Motors acknowledged it may face a $2 billion revenue hit this yr.
Final month, Sony, together with different console makers, has struggled with inventory shortages over the past yr, and stated it may not hit gross sales targets for the brand new PS5 this yr due to the semiconductor provide concern.
Microsoft’s Xbox has stated it forecasts provide points persevering with at the very least till the second half of 2021.
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Written by Sophie Webster
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