1. Samsung Electronics says minimal impact from China plant power disruption

Samsung Electronics says minimal impact from China plant power disruption

Tech giant Samsung Electronics Co Ltd said a power supply disruption at its China memory chip plant will have minimal market impact, with full-scale operations expected to resume in a few days.

By: | Seoul | Published: June 20, 2016 8:46 AM

 

Samsung Electronics Samsung, the world’s No. 1 memory chip maker, said production at the plant in Xian that makes 3D NAND memory chips was disrupted by a power outage on June 18. (Reuters)

Tech giant Samsung Electronics Co Ltd said a power supply disruption at its China memory chip plant will have minimal market impact, with full-scale operations expected to resume in a few days.

Samsung, the world’s No. 1 memory chip maker, said production at the plant in Xian that makes 3D NAND memory chips was disrupted by a power outage on June 18.

The chips have helped Samsung assume a dominant position in higher-margin products such as solid-state hard drives for computers and servers. The company said less than 10,000 wafers were affected by the disruption.

“We expect normal operation to resume at full scale in a few days,” Samsung said in a statement.

“The effect on the market will be insignificant.”

Mirae Asset Daewoo Securities brokerage said in a report the incident would not have a material impact on Samsung’s business, estimating the worst-case scenario was a loss of up to 20 billion won ($17.10 million).

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