Texas Power Failures Shut Chip Factories, Squeezing Tight Supply
- Samsung, NXP say they stopped production at Austin factories
- Carmakers, electronics companies already hurt by shortage
Power outages across Texas caused by historically cold weather have shut down semiconductor plants clustered around Austin, further disrupting a supply chain that has already been falling short of customer needs.
NXP Semiconductor NV, one of the largest makers of chips used by automakers, has idled two plants in the Austin area, the company said early Wednesday. Samsung Electronics Co., the world’s second largest semiconductor maker, also closed down production at its Austin site, the South Korean company said. Infineon Technologies AG, another large supplier of chips to the automotive industry, said its Austin plant has been shut down because the power was turned off.
Carmakers around the world have slowed production because they can’t get enough supply of electronic components. Other electronics makers, including Apple Inc., have said their growth has been constrained by the lack of parts as demand rebounded faster than many expected from the depths of the Covid-19 pandemic economic slump.
The Austin area is home to several plants and other facilities of major chipmakers. Unprecedented cold winter weather and a surge in electricity demand has crippled the Texas utility grid, forcing factory shutdowns, store closings and leaving more than 3 million homes without power.
Read More: Chip Shortage Spirals Beyond Cars to Phones and Consoles