Benzinga | Feb 17, 2021 08:07AM EST

NXP Semi Reports Electricity, Natural Gas Providers Have Temporarily Suspended Service To Austin Semiconductor Manufacturers, Including NXP, Due To Severe Winter Weather Conditions In Texas

NXP Semiconductors N.V. (NASDAQ:NXPI) today provided an update regarding the impact of the unusually severe winter weather conditions on its operations in Austin, Texas. Austin-area utility providers are prioritizing service to residential areas and for critical health, safety and human services. As a result, electricity and natural gas providers have temporarily suspended service to Austin semiconductor manufacturers, including NXP, requiring the company to idle manufacturing at its two Austin facilities. Affected customers are being notified directly by NXP of the potential for supply disruptions.

"We are carefully monitoring the situation and will resume operations in our Austin facilities as soon as possible," said David Reed, executive vice president, Operations at NXP. "We are working to maintain our Austin factories in a safe state to enable high quality and reliable supply once operations restart. Once necessary utility services are restored, our operations team will be able to evaluate the impact of the shut down, and when full production will resume. In the meantime, our focus is on the health and safety of our employees and the Austin community."

NXP also noted that all of its other manufacturing facilities outside Texas remain in full operation.