China Lockdown, Samsung Chip Manufacturers Cut Production


The number of cases of the Corona virus (COVID-19) with symptoms in China has reportedly continued to soar for the fourth day in a row.

The reason is that the new Corona outbreak detected in Xi'an City is increasingly widespread with 175 cases recorded in the last 24 hours. As a result, the lockdown was reinstated.

Thus the impact of the lockdown has made Samsung Electronics reduce its chip production in the region.

In a press release, Samsung said that it had decided to temporarily adjust operations at its chip factory in the city. Samsung further said that the decision was made to protect the health and safety of its employees and partners, which is a top priority.

Necessary steps will also be taken to ensure that consumers are not affected, including leveraging Samsung's global manufacturing network.

"Due to the lockdown, there are difficulties in employee travel and logistics so that adjustment of operations is unavoidable. When the lockdown is lifted, operations will be normalized," a company official told the Korea Herald as quoted by us from Gizmochina, Friday (12/31/2021).

The Xi'an factory is Samsung's only overseas memory chip factory and has been in operation since 2014. About 40% of the company's NAND flash chips come from there.

Meanwhile, Samsung SDI's electric vehicle battery factory in China does not appear to be affected by the lockdown. Samsung officials said that currently it is still in normal operating conditions.

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