Samsung to receive insurance payout for power outage damage

Darren Murph
D. Murph|08.06.07

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Samsung to receive insurance payout for power outage damage
Merely hours after a substantial blackout halted six chip production lines in a complex operated by the world's largest flash memory producer, Samsung is now expected to "get insurance payments from a local insurer for the damage received during Friday's power outage." Reportedly, the firm's contract with Samsung Fire & Marine Insurance will cover the damage, which is currently estimated to be somewhere near $40 million. Of note, the exact cause of the outage is still unknown, and it was stated that it would take "considerable amounts of time" to look into before the losses are finally calculated. Furthermore, some analysts have speculated that it "would take weeks for the plants to reach full capacity," and if this does indeed prove true, supplies to electronic-product makers "will likely remain constrained and prices will stay high."

Read - Samsung Gets Insurance Payout for Power Outage Damage
Read - Samsung Restarts Plants, Damage Resulting [Subscription required]
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