Samsung and Micron announced that they had to adapt their plants in Xi’an to the conditions that arose after the outbreak of the next wave of the coronavirus epidemic. Any slowdown in production in the city risks worsening the global chip shortage, a crisis that has limited the supply of everything from iPhones to new cars.
Samsung said it must cut down on operations in Xi’an. The company added that employee protection remains its “top priority” and that it plans to take “all necessary measures, including using our global manufacturing network, to ensure that our customers are not affected,” CNN informs.
Samsung has invested over $ 10 billion in Xi’an and employs over 3,300 people. According to the Korea Economic Daily, production in the city accounts for over 40 percent. Samsung’s total worldwide production of NAND memory chips, a product found in smartphones, tablets and hard drives.
US chip maker Micron said the lockdown at Xi’an could affect the production of its DRAM chips that are used in computers, as the company had to reduce the number of employees at the plant.
Micron said it is doing everything necessary to meet customer demand, but warned that “there may be some short-term delays when we activate our network.”
A total of nearly 1,200 cases of coronavirus infection have been reported in Xi’an, an ancient city in Shaanxi Province. Authorities began testing residents and placed all of the city’s 13 million inhabitants in isolation, shutting down schools, public places, and transportation. It is the largest blockade in China since the Wuhan lockdown, which imprisoned 11 million people. Residents are not allowed to leave their homes even to go grocery shopping. Food is delivered by local authorities to apartments and houses.