Samsung Electronics and Micron Technology both warned that a COVID-19 lockdown in the Chinese city of Xian could affect their chip manufacturing bases in the area.
According to a new Reuters report, Xian’s 13 million residents were placed under a strict lockdown last week that saw schools, public venues, and transportation closed, leaving only essential services like supermarkets and hospitals open. Residents were banned from leaving their homes except for urgent reasons such as medical emergencies.
To comply with the requirements of local authorities, Micron had to reduce the workforce at its Xian site. As a result, to meet immediate demand from its clients, it has to either move operations to its other facilities or outsource them.
“We are also working with local government officials to identify solutions that will enable us to minimize impact of the situation and maintain operations at the site safely,” Micron said in a statement. “We are tapping our global supply chain, including our subcontractor partners, to help service our customers for these DRAM products.”
The situation is also affecting Samsung’s NAND flash memory plants in Xian, forcing the company to adjust operations. The decision “was made in accordance with our commitment to protecting the health and safety of our employees and partners, which remains our top priority,” Samsung said in a statement.
“We will also take all necessary measures, including leveraging our global manufacturing network, to ensure that our customers are not affected.”
