Monday, August 6, 2007
Samsung Electronics said it would crank up output to meet its monthly targets after a chip plant power outage last week.
Samsung's sprawling Kiheung complex was hit by a power shortage on Friday afternoon that shut down six of its chip production lines, raising the prospect of price increases and boosting shares of rival memory chip makers.
Samsung said over the weekend its chip lines had resumed full operation by midday Saturday and expected total damage to be about 40 billion won ($43 million), after an earlier estimate of not more than 50 billion won.
"Some of the wafers that were being processed when the outage hit can be salvaged, and the potential yield from the recovered wafers was at a good level," said Choi Chang-sik, executive VP at Samsung's semiconductor business, at a news conference in Kiheung.
Samsung said it did not expect its flash memory chip supply to its main clients, such as Nokia and Apple to be disrupted.
But some analysts noted the outage could prompt those companies to reduce their dependency on Samsung in the future.
By: DocMemory
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