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Samsung’s Factory Lost Power For Just 1 Minute, But Here’s Why It Will Cost Millions Of Dollars

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Samsung’s Factory Lost Power For Just 1 Minute, But Here’s Why It Will Cost Millions Of Dollars

South Korean giant Samsung isn’t having a great start to 2020 as production at its Hwaseong chip complex has been partly halted after it witnessed a minute-long blackout on the afternoon of 31st December.

The power failure has affected the manufacturing of some DRAM and NAND flash chip production lines. The power problem occurred due to some issue with a regional power transmission cable. The company is expecting a full recovery in two to three days.

As per the report that quotes people aware of the situation, the facility hasn’t experienced a major damage, however, sources aren’t revealing the extent of the damage caused due to this power outage as of now. 

This incident is likely to cost Samsung a ton of money. By a ton of money, we’re talking millions of dollars in losses. In 2018 when Samsung’s Pyeongtaek chip plant suffered a power outage of around 30 minutes, it cost Samsung a total of 50 billion won ($43.32 million) which is approximately Rs 3 billion, according to South Korean news agency Yonhap. Don’t Miss

In case you were wondering what this has got to do with an average person. Well, for starters, Samsung is a leading brand for DRAM and NAND flash chips. Major OEMs for computers, tablets etc seek components like RAM, SSDs etc from Samsung. Our phones too have memory and storage chips made at this manufacturing facility.

In fact, Qualcomm is also manufacturing its flagship Snapdragon chipsets at Samsung’s manufacturing facilities. 

Luckily, production of Qualcomm’s latest Snapdragon 865 chipset won’t be getting affected as recently it is being manufactured by Samsung’s competitor TSMC, which is also the brand that manufactures Apples A-series CPUs, among other silicon.

Looks like we’ll have to wait to know the extent of the damage after all.

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