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Electronics Production | August 03, 2007

Chip Production hit by Power Cut

Samsung Electronics Co. Ltd. has shut down six of its chip production lines after a power cut at its plant in Kiheung, Seoul.
Samsung said it did not expect the overall losses from the outage to exceed $54.19 million. Analysts said the incident could wipe out as much as a month's worth of Samsung's total production of NAND flash memory chips.

"It is probable that at least half of the chips already in the fabrication process will have to be discarded," said Lee Min-hee, an analyst for Dongbu Securities told Reuters. "Taking into account another two weeks for ramp-up of the lines after cleanup, Samsung could very well lose a month's worth of chip shipment," Lee Min-hee.

The Kiheung plant has a total of 11 production lines, but some of the older lines produce smaller volumes of chips so the impact of the stoppages is difficult to assess Reuters.

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