Texas freeze delays server hardware supply

Unknown to many, many Taiwanese firms utilize factories in Mexico to produce hardware for the US server market. The kicker is that most of the power supplied (over 50%) to these northern factories, such as those located in Juarez, comes from natural gas imported from Texas. With the recent freezing weather and snow in the typically warm and sunny state, resources have been consolidated to help Texas recover locally, which in turn impacts the supply chain.

Sources say that production will be back to normal in March, which is just around the corner. However, other sectors of the semiconductor and computer industry have also been effected by the storm. To ensure residential areas received power first, many fabs were closed down. Wafer fabs such as those run by Samsung, NXP, and Infineon were shutdown, and we heard reports that AMD shut down their university-sized campus in Austin.

Source: DigiTimes

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