According to foreign media reports, because Samsung Electronics’ chip manufacturing plant in Texas has not been fully operational since it was temporarily closed a month ago, Samsung may face huge financial losses. According to South Korea's "Business Review" citing industry analysts, Samsung may suffer about 400 billion won (about 353 million U.S. dollars) in production losses.

According to reports, Samsung’s factory has resumed power and water supply since mid-February, but the factory has not resumed normal operation after equipment inspections. Analysts believe that it will be at least another month before the Texas factory can return to normal.

Industry observers predict that Samsung's plant in Texas will start producing wafers in mid-April, which may lead to further losses in the company's non-memory business in the second quarter of 2021.

KTB Investment & Securities analyst Kim Yang-jae said that considering that non-memory products usually require two to three months of delivery time, we believe that the production schedule of the Austin plant will face a four to five month interruption.

And because the Texas factory is responsible for manufacturing 5G radio frequency integrated circuits (RFIC) for Qualcomm, manufacturing OLED display driver integrated circuits (DDIC) for Samsung’s business, as well as image sensors, solid-state drive (SSD) controllers and 14-based For 64nm process microprocessors, lower output may cause production problems in different fields.

By the second quarter of 2021, global smart phone production may fall by 5%, but due to these latest developments, 5G smart phones in particular may face a greater impact. Market observer TrendForce estimates that the closure of the Texas plant could lead to a 30% drop in 5G smartphone production in the second quarter of 2021.