NXP Provides Update Regarding Impact of Severe Winter Weather on Austin, Texas Facilities

Rhea-AI Summary

NXP Semiconductors (NASDAQ: NXPI) announced disruptions at its Austin, Texas facilities due to severe winter weather. Utility providers have prioritized service for residential and critical areas, forcing NXP to idle its manufacturing operations. The company is directly notifying affected customers about potential supply interruptions. NXP is monitoring the situation closely and plans to resume operations as soon as utility services are restored. Notably, all other manufacturing sites outside Texas remain fully operational.

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• NXP's other manufacturing facilities outside Texas remain fully operational.

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• Austin facilities are idled due to utility service suspensions, leading to potential supply disruptions.

EINDHOVEN, The Netherlands and AUSTIN, Texas, Feb. 17, 2021 (GLOBE NEWSWIRE) -- 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.

About NXP Semiconductors

NXP Semiconductors N.V. enables secure connections for a smarter world, advancing solutions that make lives easier, better, and safer. As the world leader in secure connectivity solutions for embedded applications, NXP is driving innovation in the automotive, industrial & IoT, mobile, and communication infrastructure markets. Built on more than 60 years of combined experience and expertise, the company has approximately 29,000 employees in more than 30 countries and posted revenue of $8.61 billion in 2020. Find out more at www.nxp.com.

For further information, please contact:
Investors:	Media:
Jeff Palmer	Jacey Zuniga
jeff.palmer@nxp.com	jacey.zuniga@nxp.com
+1 408 518 5411	+1 512 895 7398

NXP-CORP

FAQ

What is the current operational status of NXP Semiconductors due to winter weather?

NXP Semiconductors has idled its Austin, Texas facilities due to utility service suspensions caused by severe winter weather, while all other manufacturing sites remain operational.

How is NXP Semiconductors notifying customers about supply disruptions?

NXP is directly notifying affected customers regarding potential supply disruptions from the idling of its Austin manufacturing facilities.

When will NXP Semiconductors resume operations in Austin?

NXP plans to resume operations in its Austin facilities as soon as utility services are restored and will evaluate the impact of the shutdown at that time.

What impact has the winter weather had on NXP's business?

The severe winter weather has caused NXP to temporarily suspend manufacturing at its Austin facilities, potentially impacting supply.