Samsung’s memory plants in China face uncertainty as Xi’an lockdown adds pressure to chip supply chain
- The South Korean memory chip giant could face logistical issues due to the lockdown measures, and experience delays in shipments, according to research firm
- The two Samsung fabs in in Xi’an account for 42.5 per cent of the company’s total NAND flash production capacity and 15.3 per cent of the global total
Samsung Electronics’ memory chip complex in Xi’an, one of the largest foreign-funded projects in China, is in the spotlight after the city tightened its lockdown measures on Monday following 150 new Covid-19 cases on Sunday.
While there are no reports of suspended production at the US$26 billion complex run by the South Korean tech giant in the capital city of Shaanxi province, its operations have been closely watched since Xi’an introduced a strict citywide lockdown two days before Christmas, suspending most forms of transport.
Samsung “could face logistical issues related to the Xi’an lockdown in the near future and experience delays in shipments”, research firm TrendForce said in a report last Friday.
A report from South Korea’s Yonhap News Agency cited a Samsung official on Friday saying that emergency measures taken at the Xi’an site have “not affected production as it has been fully utilising factory workers living in the company’s dormitory.”
Samsung has taken preventive measures, such as having essential workers stay in the on-site dormitories in case the lockdown continues, and is consulting Chinese authorities on ways to continue production, Yonhap reported.
The South Korean technology giant did not immediately reply to a request for comment. A public relations director with Samsung China declined to comment.