Samsung Electronics’ semiconductor plant in Xian
As China partially locked down Xian from April 16 to 19 to prevent the re-spread of COVID-19, Samsung Electronics’ memory semiconductor factory in the city is expected to be affected.
Samsung’s plant in Xian processes 250,000 sheets of wafer per month, accounting for 40 percent of the company’s total NAND flash production.
When Xian was locked down on Dec. 22, 2021, Samsung Electronics operated the facilities flexibly, with its operating personnel staying inside the factory. This time, the plant has no operational problems as Xian authorities has allowed essential personnel to work at production facilities and workplaces. But if the lockdown is prolonged, production will be inevitably disrupted.
If logistics are blocked due to concerns about the spread of COVID-19, the supply of raw materials may be blocked and product shipments may be delayed. Already, container traffic in China has fallen to half the level of the Lunar New Year Day when production activities were virtually halted except for essential sectors. Movement within and among cities is only half of the average in 2021.
The U.S. Chamber of Commerce in China estimated that the lockdown in Shanghai caused logistic disruptions to 57 percent of companies doing business in China. Quanta Computer, the main producer of Apple’s MacBook, has stopped operating its factories. Samsung Electronics is also going through a disruption in laptop production.
Source: http://www.businesskorea.co.kr/news/articleView.html?idxno=91043