Samsung Electronics’ Texas chip output returns to near-normal levels

FILE PHOTO: A man walks past the logo of Samsung at its office building in Seoul, South Korea, October 25, 2020. REUTERS/Kim Hong-Ji

(Reuters) -Samsung Electronics said on Tuesday that production at its U.S. chip plant at Austin, Texas had returned to near-normal levels as of last week.

Samsung (KS:005930) and other chipmakers with production facilities in the area had seen shutdowns due to severe weather in mid-February.

Samsung declined to comment on when production would be fully back to normal.

The disruption will have a definite impact on the global chip contract manufacturing industry that is already battling a severe capacity crunch, research provider TrendForce has said.

Qualcomm (NASDAQ:QCOM) and Samsung logic chips account for about 65% of the monthly production at the Samsung plant, TrendForce added.

The disruption is expected to hurt production of smartphones globally over April-June by about 5%, TrendForce estimates.