Quick access to main page (top) Direct access to main contents Quick access to main page (bottom)

Samsung Reaches $400 Million Settlement After Texas Winter Storm Damages

theguru Views  

Samsung Electronics has successfully settled a lawsuit with an American insurance company for $400 million. This settlement comes about a year and a half after the company contested claims for damages resulting from power outages at its semiconductor plant caused by a severe winter cold snap.

On the 7th, Samsung’s Austin Semiconductor Facility submitted the settlement agreement with Factory Mutual Insurance to the U.S. District Court for the Western District of Texas.

The legal dispute began in February of last year when Samsung Electronics filed a lawsuit against FM Global, a U.S. commercial insurance provider. The main issue at stake was the compensation for damages caused by a power outage that lasted about three days during a snowstorm in Texas in February 2021. Due to the nature of semiconductor manufacturing, restarting operations after a shutdown is a lengthy process. Samsung halted operations for about a month following the power outage on February 6th and only managed to ramp up production to 90% capacity by the end of March.

Industry estimates at the time of the incident suggested that Samsung’s damages amounted to $375 million. In its first-quarter earnings report, Samsung detailed the impact: “The power outage in the Austin area disrupted semiconductor wafer production, resulting in losses equivalent to about 71,000 wafers.” The company further quantified the damages, noting 300 to 400 billion KRW.

Given the extent of these losses, Samsung sought more than $400 million in compensation. However, the insurance company only agreed to pay $126 million, arguing that damages to properties not covered by the insurance policy were not eligible for compensation.

As a result, Samsung decided to file a lawsuit. After a prolonged legal battle, the company has reached a settlement, which is currently pending court approval.

theguru
content@viewusglobal.com

Comments0

300

Comments0

[BUSINESS] Latest Stories

  • Honda's NSX Returns: A 1,000-Horsepower Electric Rival to Lexus LFR
  • Honda’s S7 Electric SUV: A Major Player in the Race for EV Dominance
  • Lamborghini's First EV: A 2,000-Horsepower Beast Built for Speed and Emotion
  • Ford Revives Classic Design with the 2025 Bronco Heritage Edition
  • ID.EVERY1: Volkswagen's $21K Electric Vehicle Aims to Make Green Driving Accessible
  • Toyota’s bZ3X SUV Surges with 10,000 Pre-Orders: A New Era in EVs

You May Also Like

  • 1
    4:3 Fasting Helps Shed More Pounds Than Daily Dieting, Says New Study

    LIFESTYLE 

  • 2
    This Study Says Winter-Conceived Babies May Grow Up Leaner—Here’s Why

    LIFESTYLE 

  • 3
    Harvard Reveals 7 Easy Chair Exercises That Are Surprisingly Powerful for Seniors

    LIFESTYLE 

  • 4
    Spring Is Here, So Why Are You Exhausted and Anxious?

    LIFESTYLE 

  • 5
    Why Cancer Risk Soars After a Type 2 Diabetes Diagnosis—Even Without Obesity

    LIFESTYLE 

Popular Now

  • 1
    Dark Red vs. Bright Red: How to Spot Colon Cancer Early

    LIFESTYLE&nbsp

  • 2
    Is 'Bad' Cholesterol Messing with Your Brain? New Study Says Yes

    LIFESTYLE&nbsp

  • 3
    New Study Finds Coffee Supercharges Good Gut Bacteria — Even Decaf

    LIFESTYLE&nbsp

  • 4
    Powder, Liquid, or Bar? Here's the Best Protein for Your Fitness Goals

    LIFESTYLE&nbsp

  • 5
    Your Pillow Is 17 Times Dirtier Than a Toilet Seat—the Gross Truth

    LIFESTYLE&nbsp

Must-Reads

  • 1
    4:3 Fasting Helps Shed More Pounds Than Daily Dieting, Says New Study

    LIFESTYLE 

  • 2
    This Study Says Winter-Conceived Babies May Grow Up Leaner—Here’s Why

    LIFESTYLE 

  • 3
    Harvard Reveals 7 Easy Chair Exercises That Are Surprisingly Powerful for Seniors

    LIFESTYLE 

  • 4
    Spring Is Here, So Why Are You Exhausted and Anxious?

    LIFESTYLE 

  • 5
    Why Cancer Risk Soars After a Type 2 Diabetes Diagnosis—Even Without Obesity

    LIFESTYLE 

Popular Now

  • 1
    Dark Red vs. Bright Red: How to Spot Colon Cancer Early

    LIFESTYLE 

  • 2
    Is 'Bad' Cholesterol Messing with Your Brain? New Study Says Yes

    LIFESTYLE 

  • 3
    New Study Finds Coffee Supercharges Good Gut Bacteria — Even Decaf

    LIFESTYLE 

  • 4
    Powder, Liquid, or Bar? Here's the Best Protein for Your Fitness Goals

    LIFESTYLE 

  • 5
    Your Pillow Is 17 Times Dirtier Than a Toilet Seat—the Gross Truth

    LIFESTYLE