Massive outage halts Infineon’s chip production at Dresden plant

Article by: Anne-Françoise Pelé

Infineon was forced to halt manufacturing operations at its chip factory in Dresden, Germany, due to a 20-minute power outage in Saxony’s capital.

Infineon Technologies said it was forced to halt manufacturing operations at its chip factory in Dresden, Germany, due to a 20-minute power outage in Saxony’s capital.

At a press conference last Friday (September 17), Jochen Hanebeck, member of the board of directors and COO of Infineon, confirmed the interruption of manufacturing at the company’s chip factory in Dresden on September 13, 2021. He said, “We had winter storms in Texas and Covid [constraints] on many sites. You’d think we’d covered all the statistical improbabilities in the end, but on Monday the electricity went out for twenty minutes. Standby generators have started, but can only track affected systems*.”

Infineon Dresden
Infineon site in Dresden (Image: Infineon)

Hanebeck stressed that “there has never been a risk to human beings, workers or the environment.”

The Neubiberg, Germany-based company said it was quickly able to resume production, but assessing the impact will take some time. “Many facilities have gone into emergency shutdown, but now most facilities are operational again. What colleagues have to do now is evaluate the work in progress, the semi-finished products. In a week or two, we will be able to tell our customers more. The impact will be less [important] than in Austin.

For the third quarter of fiscal year 2021, at the end of June 2021, Infineon generated revenue of €2,722 million, up 1% on a sequential basis and 25% on an annual basis. The pandemic-related constraints on the group’s production capacity in Melaka, Malaysia, and the impact of the winter storm in Austin, Texas, have indeed mitigated the effect of strong demand.

According to the Associated Press, German authorities said a metal foil balloon caused a short circuit at a Dresden electrical substation shortly after 2 p.m., causing a power outage that affected hospitals, trams , factories and around 300,000 homes.

Robert Bosch and GlobalFoundries also operate chip factories in Dresden.

(*The press conference was held in German. The interpreters translated the introductory speech and the Q&A session from German into English.)

This article was originally published on EE Times Europe.

Anne-Francoise Pelé is editor of eetimes.eu and EE Times Europe.

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