Samsung, Micron warn China’s Xi’an lockdown could affect chip supply
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The coronavirus lockdown meant that the sanitation workers were prevented from cleaning a road on the streets of Xi’an, China’s northern Shaanxi Province.
AFP | AFP | Getty Images
Samsung Electronics Micron TechnologyTwo of the largest global memory chip manufacturers, Xi’an and Xi’an, have warned of the potential impact of a Covid-19 lockdown on the Chinese city.
Micron stated Wednesday that the lockdown might cause delays in supply of DRAM memory chips. These are used widely in data center environments.
It stated that stringent restrictionsThe earlier in the month, it was made more difficult by this change, and has resulted at its manufacturing location in a lower staffing level.
Samsung Electronics also said on Wednesday that it will temporarily adjust operations at its Xi’an manufacturing facilities for NAND flash memory chips, used for data storage in data centers, smartphones and other tech gadgets.
Chinese officials have imposed strict restrictions on travel to and from Xi’an starting Dec. 23 in accordance with Beijing’s desire to contain any outbreaks immediately.
Micron stated in a blog that they are taping their global supply chains, which includes our subcontractor partner, to service customers using these DRAM products.
According to the company, “We expect that these efforts will enable us to satisfy most of our customers demand. However there might be some short-term delays while we activate our network,” said the company.
Micron said that they were working to prevent virus transmission. They had used measures like physical distancing or on-site testing.
Samsung has two production lines in Xi’an making advanced NAND Flash products, which account for 42.5% of its total NAND flash memory production capacity and 15.3% of the overall global output capacity, according to analysis provider TrendForce.
Seoul-based analysts said chips made in Samsung’s Xi’an NAND plant would mainly go to the China market with limited shipments to overseas destinations, and some of the biggest demand for the kind of chips made in the plant would come from Chinese server companies.
Samsung said in a late October earnings call that it had entered the July-September quarter with low inventory of NAND chips, and intended to normalize inventory level during that quarter. The October-December earnings results are expected to be announced in January.
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