© NXP Business | March 12, 2021
NXP resumes operations at Austin, Texas facilities
NXP Semiconductors says it has resumed initial operations at its manufacturing facilities in Austin, Texas following the severe winter storm and the widespread disruption of electricity that followed.
The storm and subsequent loss of utilities damaged NXP’s two wafer manufacturing facilities in Austin and caused a full shutdown that began on February 15. Utilities were restored to the impacted facilities and clean room environments were deemed safe for personnel to return on February 27. Since that time, NXP says it's teams have been on-site repairing damage, assessing impacted systems and executing equipment recalibrations. Personnel are currently evaluating the wafer-level work in process (WIP) to ensure appropriate product quality. The company says that approximately one month of wafer production has been lost to date from NXP’s two Austin-based wafer manufacturing facilities due to the damage from the storm and the loss of power. “The weather conditions and utility disruptions the state of Texas experienced last month were truly unprecedented. We are pleased that our Austin facilities have now resumed initial operations and we are making solid progress on our recovery plan designed to return the wafer fabs to pre-storm production levels. We understand the supply disruptions may impact our customers and we are working to ramp to full production while maintaining quality for these complex manufacturing processes. We continue to provide updates to affected customers on a regular basis and are working tirelessly to minimize potential disruption,” says Kurt Sievers, NXP’s President and CEO in a press release. At this point in time, NXP does not believe there to be an impact to its previously communicated revenue guidance for the first quarter of 2021. Additionally, while the company has not provided any financial guidance for the second quarter, the current expectation is for an impact of approximately USD 100 million of revenue in the second quarter.
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