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IFX - Infineon Technologies AG News Story

€35.18 -0.4  -1.2%

Last Trade - 4:35pm

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

UPDATE 1-Texan chipmakers face slow recovery from power crisis as shortage looms

Tue 2nd March, 2021 11:36pm
(Add Samsung statement)
    By Hyunjoo Jin
    SAN FRANCISCO, March 2 (Reuters) - Chipmakers like Samsung
Electronics Co Ltd  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 NV  NXPI.O  and Infineon
Technologies AG  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 as 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".
    Samsung said on Tuesday it "may require more time to reach
normal levels as we inspect and reconfigure the facility."   
    The plant suspension would have an impact on automakers five
months later because that is the time needed to make chips,
Latson 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." 

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