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IFX - Infineon Technologies AG News Story

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Sector
Technology
Size
Large Cap
Market Cap £40.18bn
Enterprise Value £43.36bn
Revenue £8.05bn
Position in Universe 35th / 1045

Texan chipmakers face slow recovery from power crisis as demand rises

Tue 2nd March, 2021 8:24pm
SAN FRANCISCO, March 2 (Reuters) - Chipmakers, such as
Samsung Electronics  005930.KS , will need a couple of weeks to
resume production in Texas after shutdowns caused by severe
weather, and customers could face knock-on effects in several
months' time, a representative of a trade body said.
    Samsung, NXP Semiconductors  NXPI.O  and Infineon
Technologies  IFXGn.DE  were ordered to shut factories in Texas
last month after a winter storm killed at least 21 people and
left millions of Texans without power.
    The shutdown threatens chip supplies to customers, when the
industry is scrambling to meet demand, which is rising
especially from the auto sector, but also for laptops and other
products as economies recover from the impact of the pandemic.  
   
    Chipmakers now have the power, water and gas they need to
operate, but they need time to restart tools and clean the
factories, Edward Latson, CEO of the Austin Regional
Manufacturers Association, said.
    He said the process was slow and "very expensive".
    The plant suspension would have an impact on automakers five
months later because that is the time needed to make chips, he
told Reuters.   
    There is also an impact now, Risto Puhakka, president of
VLSIresearch, said.
    "The impact is almost immediate, as the chip inventories are
low and customers need them as soon as possible," he said. "We
are now looking at about one month of lost production."    
    Samsung supplies chips for Tesla  TSLA.O  and other
customers and NXP and Infineon are also automotive chip
suppliers.      
    Tesla Chief Executive Officer Elon Musk said the electric
vehicle company’s Fremont, California, plant shut down for two
days last week, without elaborating further.  urn:newsml:reuters.com:*:nL4N2KV31F  
    NXP, which has two factories in Austin, said in a statement
on Tuesday: "We are diligently working through equipment, system
and product assessments to resume our operations as soon as
possible."
    Samsung had no immediate comment.    

 (Reporting by Hyunjoo Jin; editing by Barbara Lewis)
 ((hyunjoo.jin@thomsonreuters.com; 82-2-3704-5685; Reuters
Messaging: hyunjoo.jin.thomsonreuters.com@reuters.net))
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