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Samsung Electronics’ Chinese semiconductor factory affected by nearby explosion

Collected: 2016.06.20

Distributed: 2016.06.21

Source: Go Direct

[Samsung Electronics’ Xi’an factory]

A massive explosion of a power substation in Xi’an, Shaanxi Province, northwest China, has caused production disruption at Samsung Electronics Co.’s semiconductor factory nearby due to hours-long blackout. Recovery operation is still underway but it may take several more days until full normalization.

According to South Korea’s tech giant Samsung Electronics and Chinese media outlets, the explosion occurred at a 330-kilovolt power substation at Sunday midnight in southern Xi’an, which caused a partial halt to the company’s production lines. The substation is operated by state-run Guodian Shanxi Company.

An unnamed official from Samsung Electronics said that the factory’s power system was affected by the explosion, leading to an unstable power supply due to a voltage drop.

The official noted that part of its production line facilities instantaneously halted considering the sensitivity of semiconductor equipment.

As of Sunday, power supply at Samsung Electronics’ Xi’an factory was back to a normal level and half of the affected facilities were recovered. Samsung said that it will take three to four more days for the facilities to resume operations at full capacity.

Meanwhile, the partial halt is estimated to cause losses of 10 billion won ($8.59 million) including recovery expenses to Samsung Electronics. That means about 10,000 semiconductor wafers based on 300 millimeter wafers may not be produced in a timely manner.

Samsung Electronics’ Xi’an factory produces 3rd Gen Vertical-Nand (V-NAND) flash memory. About 100,000 sheets of wafers are manufactured per month.

By Lee Seung-hoon

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