Samsung loses over $270M from Texas plant shutdown as quarterly earnings growth

Patrick

Shutting down its semiconductor plant in Austin, Texas misplaced Samsung over 300 billion gained (round $270 million), Yonhap Information stories. Talking throughout a convention name, a senior vice chairman at Samsung’s foundry enterprise Han Seung-hoon mentioned that the shutdown affected round 71,000 wafers, similar to “round 300 to 400 billion gained in injury.” The assertion coincided with Samsung’s newest earnings launch, during which it reported sturdy gross sales of its smartphones and different client electronics.

The South Korean electronics large was compelled to close down its Austin plant — which produces microprocessors like radio frequency built-in circuits and strong state drive controllers — again in February after a storm left some 200,000 Austin properties with out energy. The shutdown lasted a month in whole, the longest Samsung has ever needed to halt manufacturing at a manufacturing facility. Nonetheless, the corporate says that the plant was again as much as 90 p.c manufacturing on the finish of March, and is now again as much as regular ranges.

Total, nonetheless, The Monetary Instances stories that Samsung earnings exceeded expectations. Internet revenue for the quarter was up 46 p.c to 7.1 trillion gained (round $6.4 billion) in comparison with the identical quarter the earlier yr, leading to its highest first quarter revenue since 2018. The rise was pushed by a 66 p.c surge in earnings at its cell division, in keeping with CNBC. Samsung says that gross sales of its “properly acquired” flagship Galaxy S21 collection have elevated alongside its extra value aggressive midrange fashions.

Samsung’s personal manufacturing points have coincided with a world chip scarcity that’s affected every part from graphics playing cards to automobiles and even toasters. Samsung says the provision points have had knock-on results on its enterprise, contributing to a drop in gross sales for cell shows within the first quarter. The corporate says it’s doable that offer points will proceed into the second half of the yr (echoing related predictions from TSMC and Intel), however that it’s “strengthening cooperation with the in-house foundry and increasing the usage of outsourced foundries” to compensate.

In any other case, Samsung thinks its enterprise will profit from financial recoveries and stimulus packages world wide. It expects sturdy demand for every part from servers, to storage, smartphones, and PCs within the second half of the yr. Nonetheless, it particularly says that demand for TVs may drop in the identical interval, as folks begin venturing outdoors.

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