NXP Semiconductors has restarted its initial operations at the manufacturing facilities in Austin, Texas following the severe winter storm and corresponding widespread disruption of gas, electricity and water recently experienced across Texas.
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.
Kurt Sievers, NXP’s President and CEO, commented, “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 regularly and are working tirelessly to minimize potential disruption.”
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 teams have been on-site repairing damage, assessing impacted systems and executing equipment recalibrations.
Personnel is currently evaluating the wafer-level work in process (WIP) to ensure appropriate product quality.
Due to damage from the storm, subsequent loss of utilities and the ongoing restarting of production, approximately one month of wafer production has been lost to date from NXP’s two Austin-based wafer manufacturing facilities.
At this point, NXP does not believe there to be an impact on 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 $100 million of revenue in the second quarter.
NXP will provide additional details regarding its first-quarter results and expectations for the second quarter in its earnings press release at the end of April.