Samsung’s Hwaseong Plant With EUV Lines Suffers Power Outage – Production Halted

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Korean tech giant Samsung Electronics broke ground on a new EUV-based chip fabrication line in Hwaseong, South Korea last year. The company is one of three in the world right now that is capable of manufacturing chips on bleeding-edge semiconductor nodes, with Samsung-made chips finding their way into all sorts of devices. However, the company is facing some problems today as its Hwaseong facility is reporting a power outage reports SeekingAlpha. Take a look below for more details.

Samsung Halts Chip Production Partially At Its Hwaseong Facility After Power Outage

The details related to this power outage are sparse for the time being. as we're yet to see any information make its way on mainstream South Korean media. Seeking Alpha reports that the source of this information is a ''statement made'' to Bloomberg, presumably by Samsung. The report goes on to claim that the company has not paused all of its chip fabrication at the Hwaesong plant, and a report from the Mizhuo Financial Group suggests that DRAM, NAND and system chip production might have been affected.

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Due to the nature of these details, it's impossible to ascertain with certainty which companies might be affected by today's outage. After announcing plans for the facility in 2017, Samsung doubled the expenditure this year for construction. Responsibility for building the plant falls to Samsung C&T; the chaebol's construction arm, with total investment in Hwaseong, estimated to be in excess of $1 billion.

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The news comes at a time when the world's top three chip manufacturers are neck to neck in competition. Intel, TSMC and Samsung are investing heavily in the industry to keep up with, and exceed each others number of orders and market share. Samsung, for its part, is expected to invest $116 billion in its foundry business over the next twelve years. While this is a big amount, it still falls short of both Intel and TSMC's projected capital expenditure for fabrication.

Of the $116 billion, $69 billion will go towards physical facilities and equipment, and the remainder will be used for research and development. Intel, on the other hand, plans to invest $11 billion to construct a new fabrication facility in Istrael over the next four years. Israeli foreign minister Mr. Moshe Kahlon expects that the plant will create 1,000 jobs, and he has confirmed that Intel will receive a 9% grant from the Israeli government.

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