The Korea Herald

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Samsung sees no serious impact from chip plant suspension in China

By Korea Herald

Published : June 20, 2016 - 14:27

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[THE INVESTOR] Samsung Electronics downplayed any serious impact from the suspension of its chip-making plant in China that was caused by an explosion at a nearby power substation over the weekend.

The Korean tech giant on June 20 said that following the explosion some production lines stopped working due to low voltage power and they are working on the resumption in the next three days. 


Samsung’s first semiconductor fabrication factory in Xian, China Samsung’s first semiconductor fabrication factory in Xian, China

“Up to thousands of wafers should be disposed. But other than that there is no serious impact from the suspension,” said a Samsung official.

Hwang Joon-ho, an analyst at Mirae Asset Daewoo, estimated the total damage at about 10 billion (US$8.6 million) to 20 billion won.

“Samsung is the sole producer of the 3D NAND chips that are produced at the plant. If there’s any supply constraint, its prices are likely to increase,” he added.

By Lee Ji-yoon (jylee@heraldcorp.com)