Samsung, Micron Warn China’s Xian Lockdown Could Affect Memory Chip Manufacturing

Samsung Electronics and Micron Technology, two of the world’s largest memory chip makers, have warned that the COVID19 lockdown in the Chinese city of Xi’an could affect their chip production facilities in the region. area.
Micron said on Wednesday the lockdown could cause delays in the delivery of DRAM memory chips, which are widely used in data centers.
He said the strict restrictions, which took effect earlier this month, could be increasingly difficult to mitigate and lead to downsizing at its production facility. Samsung Electronics also announced on Wednesday that it will temporarily adjust operations at its manufacturing facility in Xi’an for NAND flash memory chips, which are used to store data in data centers, and phones. smart devices and other technology devices. 4,444 Chinese authorities have imposed strict restrictions on movement in and out of Xi’an since December 23, following Beijing’s desire to immediately contain outbreaks as soon as they appear.
“We use our global supply chain, including our outsourcing partners, to help our customers service these DRAM products,” Micron said in a post on blog. “We anticipate that these efforts will allow us to meet most of our customers’ needs, but there may be short-term delays in activating our network,” the company said.
Micron added that he has worked to minimize the risk of transmission of the virus and has used measures including physical screening and spot checks, and encouraged vaccination.
Samsung has two production lines in Xi’an specializing in the production of advanced NAND Flash products, accounting for 42.5% of total NAND flash memory production capacity and 15.3% of total output capacity, according to the report. TrendForce’s analytics provider. 4,444 Seoul-based analysts said chips made at Samsung’s Xian NAND plant will be mainly for the Chinese market with limited shipments to overseas destinations and some demand. Bigger for this factory-made chip will go to Chinese server companies.
Samsung said on an earnings call in late October that it entered the July-September quarter with low NAND chip inventories and plans to normalize inventory levels during that quarter. UK is expected to announce October and December results in January.