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Samsung, other giants shut down some U.S. capacity as chip shortage worsens


After the United States has repeatedly disrupted the global chip supply chain, the chip supply shortage is spreading. After Volkswagen, General Motors and other automakers were forced to announce production cuts due to chip shortages, it appears that US tech giant Apple will also stop production of the iPhone 12 mini due to a lack of chip supply. 
Adding insult to injury, as the global chip supply shortage continues to worsen, a number of chip makers such as Samsung, Infineon and NXP have shut down some of their production capacity in the U.S. What's going on? 
Thursday (February 18) MarketWatch latest reports show that by the blizzard extreme weather, part of the chip companies in the United States due to the impact of the facilities and forced to shut down production, which may exacerbate the problem of chip shortages, which indirectly affects the country's automobile manufacturers production. 
Reports show that a spokesman for South Korea's Samsung Electronics, one of the world's largest chip makers, said the company has 2 factories in Austin, Texas, and on Tuesday the local government has asked the company to shut down the 2 factories. It is reported that the Austin plant accounts for about 28% of Samsung's total chip production capacity. Its spokesman said, samsung will resume production as soon as possible, but must wait for the power supply recovery. 
It is learnt that about 3.8 million residents in Texas were previously left without power. In order to solve the problem as soon as possible, the Texas government on Thursday issued a ban on the sale of natural gas to the outside world, requiring natural gas producers to sell natural gas to power plants in the state. Dan Woodfin, an executive with Texas grid operator Ercot, said in an interview that the lack of natural gas supply was one of the reasons it was having trouble restoring power. 
And at a time when a large number of people in Texas are experiencing problems with power outages, it's natural that the power needs of the factories are not being met as a priority. Reports show that Samsung is not required to close the chip factory enterprises, NXP and Infineon chip giants also due to power supply disruptions and closed the local factory. 
Meanwhile, the process of China's chip localisation is accelerating. The latest news on Thursday showed that Baidu disclosed its chip progress for the first time in its latest earnings report. The report showed that Baidu's self-developed Kunlun 2 chip will soon be in mass production to boost the arithmetic advantage of Baidu's smart cloud.