Samsung Electronics said chip production at its Austin, Texas, US plant has returned to near-previous levels.
The South Korean tech giant and other chipmakers with manufacturing facilities in the region were forced to shut down due to an abnormal freeze that hit the area last month. In fact, the enterprises took away electricity in order to give it to people. This has greatly impacted the global contract chip manufacturing industry, which is currently struggling with severe shortages.
At the same time, against the backdrop of the pandemic, there is a surge in demand for electronics, while now component manufacturers simply cannot process all orders. The component shortage has been fueled by the launch of new game consoles, 5G-enabled smartphones, rising demand for TVs and home theaters, and high-tech electric vehicles. The semiconductor shortage hit the auto industry hard, with some companies having to shut down production altogether.
Samsung’s Austin plant produces about 65% of Qualcomm and Samsung’s SoCs, but experts believe downtime will not have much impact on smartphone production in the second quarter of this year.