In a move to calm fears over supplies, Samsung Electronics has given assurances that it will crank up output to meet its targets for the month after the recent power outage disrupted operations.
To recap, Samsung’s sprawling complex in Kiheung, South Korea, was hit by a problem at the switchboard of a transformer substation. It led to the power shortage on Friday afternoon last week that shut down six of its chip production lines.
Over the weekend, the company resumed full operation on its chip lines though total damage was expected to be in the region of $43 million. This raised the prospect of price increases and also boosted the shares of rival memory chip makers.
Some analysts had initially said the incident could wipe out as much as a month’s worth of Samsung’s total output of NAND flash memory chips, but several later said the impact on earnings would be limited if the company managed to increase productivity.
Other analysts also warned that Samsung’s major clients could be prompted to diversify their supplier base as a result.
Whatever it is, the effects of the disruption seems to have been taken care of, and any price fluctuation appears to be unlikely now.