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Samsung's Prolonged Suspension of their chip plant in Austin could disrupt OLED display drivers used in OLED based iPhones



The prolonged suspension of Samsung’s chip plant in Austin due to power shortage caused by a freeze is increasing the possibility that smartphone production could be negatively affected in respect to a key part for smartphones including those used in Apple iPhones.


It manufactures chips used in flagship smartphones Samsung sells in the Americas. It also manufacturers display driver IC for organic light emitting diode (OLED) panels used by Apple for its iPhones. The Austin plant has production capacity of 20,000 wafers per month.


Samsung conventionally stocks up a month and a half worth of components, so the suspension of the factory won’t affect the company yet. The Austin plant stopped production around two weeks ago.


However, if it takes too long for the plant to restart operations, it may eventually affect production of smartphones. People familiar with the matter told The Elec that it will likely take around two months for the plant to start production normally again. This means Samsung will have until mid-April to normalize production for it to not affect its smartphone production.


Apple’s iPhone 12 is selling extremely well. A potential delay in securing DDIs for their panels could cause opportunity costs for Cupertino.


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