A sanitation worker sweeps an empty street in Xi’an in China’s northern Shaanxi province, amid the coronavirus lockdown in the city on December 28, 2021.
STR | AFP | beautiful pictures
Samsung Electronics and Micron Technology, two of the world’s largest memory chip makers, warned that the Covid-19 lockdown in the Chinese city of Xi’an could affect their chip production facilities in the region.
Micron said on Wednesday the lockdown could lead to a delay in the delivery of its DRAM memory chips, which are widely used in data centers.
It says strict restrictions, which took effect earlier this month, could become increasingly difficult to reduce and lead to thinner staffing at the manufacturing facility.
Samsung Electronics also said on Wednesday that it will temporarily adjust operations at its Xi’an manufacturing facility for NAND flash memory chips, which are used to store data in data centers and phones. smart devices and other technology devices.
Chinese officials have imposed tough restrictions on travel in and out of Xi’an since December 23, in line with Beijing’s efforts to immediately contain outbreaks as they arise. appear.
“We are tapping into our global supply chain, including with our subcontracting partners, to help service our customers for these DRAM products,” Micron said in a post on Facebook. blog.
“We anticipate that these efforts will allow us to meet most of our customers’ needs, however there may be some short-term delays as we activate our network,” he said. the company said.
Micron added that it is working to minimize the risk of transmission of the virus and has put in place measures including physical screenings and spot checks, and encourages vaccinations.
Samsung has two production lines in Xi’an to manufacture advanced NAND Flash products, accounting for 42.5% of total NAND flash memory production capacity and 15.3% of total global capacity, according to the supplier. TrendForce analysis.
Seoul-based analysts say chips made at Samsung’s Xi’an NAND plant will mainly go to the Chinese market with limited shipments to overseas destinations and some demand. The biggest for this factory-made chip will come from Chinese server companies.
Samsung said in an earnings call in late October that it entered the July-September quarter with low NAND chip inventories and plans to normalize inventory levels during that quarter. Expected to release October-December earnings results in January.
