IFNNY - Samsung pauses chip fabs in Texas amid power shortage sending semiconductor stocks lower

Austin Energy has asked large industrial energy users like Samsung ([[SSNNF]],[[SSNLF]]) to pause operations due to the local power shortage as winter weather ravages the area."With prior notice, appropriate measures have safely been taken for the facilities and wafers in production. We will resume production as soon as power is restored. We are discussing timing with the proper authorities," Samsung spokeswoman Michele Glaze tells the Austin American-Statesman.The order also impacts the fabs of NXP Semiconductors ([[NXPI]] -2.3%) and Infineon (IFNNY), both automotive chip suppliers.Temporary shutdowns can have a large impact even when there isn't a global chip shortage. In 2018, a 30-minute outage at a Samsung fab took out 3% of the global NAND supply. Semi names seeing red today include Samsung's foundry peer TSMC ([[TSM]] -1.8%), NXPI peer ON Semi ([[ON]] -2.6%), and semi equipment companies KLA ([[KLAC]] -2.7%), Lam Research ([[LRCX]] -2.0%), and Applied Materials ([[AMAT]] -3.6%).

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Samsung pauses chip fabs in Texas amid power shortage, sending semiconductor stocks lower