SUNNYVALE, Calif. -- Rolling blackouts are beginning to hit California's prized electronics industry.
Advanced Micro Devices Inc., Apple Computer Inc., and other hi-tech companies here today (Jan. 17) announced they were among those hit by rolling blackouts imposed by regulators in California. The rolling blackouts were imposed following a severe electricity crisis in the state.
The blackouts appeared to have only affected select companies in Silicon Valley and elsewhere. As of late today, Intel, National Semiconductor, and other high-tech companies in Silicon Valley claimed they were not hit by the blackouts.
But companies like Hewlett-Packard, Yahoo, and others were warned by power regulators that they that would be hit by the blackouts.
Others, however, did find themselves suddenly in the dark. At those companies, meetings were cut short, and work was temporarily disrupted. "If it keeps up, it will become a problem," said Y.C. Buno Pati, chief executive officer of San Jose-based Numerical Technologies Inc., which supplies phase-shifting photomask technology for subwavelength lithography.
At Numerical Technologies--like a number of other businesses around the San Jose area--today's blackouts were more of a nuisance than major problems. Pati said the power went off during a late afternoon board meeting at Numerical Technologies, which is preparing to release its earnings on Thursday.
Despite the power crunch in California, analysts said there will be little impact in the worldwide supply chain. Most chip makers do not have their main production fabs in Silicon Valley. And many, if not all, PC makers and contract manufacturers in Silicon Valley have the bulk of their production done offshore.
Still, most high-tech companies in California are bracing themselves for the worst.
At noon today (PST), state regulators ordered the rolling blackouts in northern and central California--which impacted some 500,000 customers. It also shut down traffic lights, automatic teller machines and elevators in San Francisco, San Jose, and elsewhere.
About 200,000 of those customers were in Northern California. Pacific Gas & Electric (PGE), a troubled utility that is saddled with debt, is the main provider in Northern California.
The remaining customers were hit in Southern California. In that area, service is provided by Southern California Edison, which is fighting to stave off bankruptcy.
In fact, the situation is so severe that one hi-tech executive criticized state regulators and utilities.
Calling California a "Third World Country," Intel CEO Craig Barrett last week was also quoted in the local press as saying that Intel will not build any more plants in the state until the situation is resolved.
A spokesman for Intel today said the company was not affected by the rolling blackouts today. "We have not been impacted," the spokesman said. "We are taking measures to reduce our power consuption."
A spokesman for National Semiconductor Corp. in Santa Clara, Calif., also said the company was not affected today."We have not been affected--so far," the spokesman said.
AMD was not so lucky. "We have been informed by PG&E that we will be the subject of rolling blackouts for one to three hours today," said a spokesman for AMD. "It could also affect us tomorrow morning."
The blackouts impacted AMD's offices in Sunnyvale from 4 p.m. (PST) to possibly 5 p.m. (PST) or longer. The event did not impact the company's R&D fab in that location. AMD's main production fabs are located in Texas and Germany, it was noted.