Recently, Texas has been experiencing a spell of cold weather of which they were not prepared for. This had led to blackouts in parts of Texas and this has affected many people and businesses alike. One of the largest semiconductor manufacturers, Samsung, had to temporarily shut down their S2 Fab in order for the local energy company to ensure power to the surrounding area.
Samsung Wasn’t The Only One To Shut Down Its Operation – Infineon Technologies And NXP Semiconductors Shut Down As Well
The temporary shutdown of the S2 fab was preplanned in coordination with the local energy company according to TrendForce’s report. Samsung’s S2 fab is located in Austin, Texas, and wasn’t the only operation temporarily shutdown. Infineon Technologies and NXP Semiconductors both were also temporarily shut down to meet power demands for local homes. The power grid in the area was not meant for the cold weather, so the decision to shut down circulated when the local energy company called for its industrial partners to temporarily cease operation.
The S2 fab is responsible for close to 5% of the global 300-mm wafer output per month and if the fab is shut down for a week, the global 300-mm foundry capacity will be impacted by 1% to 2%. The chips made on the production line are chips based on 14LPP and 11LPP technologies as well as mature (28nm – 65nm) nodes. The products made in the fab are telecommunication chips for Qualcomm, automotive chips for Tesla and Renesas, and chips for Samsung’s own LSI division as well as SSD controllers using 14 nm – 40 nm nodes.
The effects of a preplanned shut down normally do not affect production rather the lead time for chips which can slow the supply of necessary components which directly affect cars, phones, and SSDs. TrendForce thinks that a price hike might occur, but the impact on the industry will be minimal.
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