Circuits Assembly Online Magazine - Power Outage at Samsung’s Seoul Plant Forces Shutdowns

SEOUL – A power outage at Samsung Electronics's manufacturing plant near Seoul forced a shutdown of several production lines; this could result in a slight decline in the supply of memory, published reports say.

The company said its Kiheung complex lost power after a malfunction at a transformer substation. A Samsung spokesperson said six of the 11 lines were shut down.

Samsung reported the factory would be back up to production within two days, but didn’t state the impact of lost time.

Samsung has 44% of the market share of memory chips, says iSuppli. The plant makes DRAM and NAND flash chips, used in portable devices.

Samsung estimates a loss of 15% for the third quarter; this could mean an 8% to 10% decline in memory for the overall market, triggering price increases, Samsung believes.