Samsung's U.S. Factory Has Been Suspended For A Month. NOTE Series Might Not Launch This Year

Mar 17, 2021 News

Samsung's U.S. Factory Has Been Suspended For A Month. NOTE Series Might Not Launch This Year

As per Sina Technology News on March 17. China's Taiwan Research Institute said that Samsung's long-term suspension of production at its chip manufacturing plant in Austin, Texas, United States, will reduce global smartphone production in the second quarter of this year. 5%. Samsung's U.S. chip factory has stopped production on the 16th of last month. It has been out of production for one month and has not resumed production. It is the first time the factory's production line has been shut down for more than one month. Samsung's loss is expected to reach 400 billion won. On February 16, due to the extremely cold weather in the area, which caused a large-scale power outage, Samsung had to stop the factory's operation.

It is estimated that the impact of the shutdown of Samsung's factory on smartphones output is equivalent to 17 million mobile phones. This quarter, mobile phones' production compatible with high-speed fifth-generation wireless networks (5G) will drop by 30%.

The Austin plant produces smartphone communication chips for Qualcomm, an American chip company that controls a large market share in this area. The factory also produces driver chips for Samsung's organic light-emitting diode panels supplied to smartphone manufacturers, including Apple.

The research institute said in a report that the plant's capacity utilization rate is not expected to rise to more than 90% until the end of March.

Samsung said: "Although we are currently working hard to resume operations, we need to inspect and reconfigure production facilities first. This process may take more time to reach normal levels. The most important thing for us now is to ensure that employees and the community Security."

Besides, Samsung also issued a warning that there is a serious imbalance in the semiconductor industry and said that the shortage of chips might cause the company to suspend new Note series smartphones in 2021. Samsung Mobile's Koh Dong-jin (Koh Dong-jin) raised this warning at its annual shareholder meeting in Seoul.

Gao Dongzhen said: "The global IT industry has a serious imbalance between supply and demand. Despite the difficult environment, our business leaders meet with overseas partners to solve these problems. It is still difficult to say that the shortage has been 100% resolved."

Gao Dongzhen, who is in charge of Samsung's IT and mobile communications business, said that Samsung might decide not to release new Galaxy Note series phones in the second half of 2021. He said: "The Note series is positioned as the high-end model in our business. Launching two flagship models in the same year may be a burden. The Note model's release time may change, but we will release the new Note next year. Cell phone."

Since 2021, there has been a serious shortage of chips in the world. In addition to electronic devices such as smartphones, tablets, and laptops, fields such as automobile manufacturing have been severely affected by insufficient chip supply. Recently, many companies have issued warnings that the duration of the chip supply shortage will exceed previous expectations.

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