Tech

Blocking factories Samsung and Micron in China

What just happened? Samsung has confirmed it will adjust operations at its semiconductor plant in Xi’an after an entire Chinese city was locked down due to a spike in Covid-19 cases. The company says this should not affect customers, but there are concerns about the potential impact on global NAND supply and prices if the restrictions are in place for longer than expected.

CNN writes that last week 13 million Xi’an residents were subjected to lockdown, which closed schools, public places and transport, leaving only basic services such as supermarkets and hospitals open. Residents were prohibited from leaving their homes except for urgent reasons such as emergency medical care.

The situation is affecting Samsung’s NAND flash factories in Xi’an, forcing the company to adjust its operations. Korean economic newspaper… 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 the use of our global manufacturing network, to ensure that our customers are not harmed.”

Samsung’s two factories, employing over 3,300 people, process a total of 250,000 wafers per month, representing 42.5% of Samsung’s global NAND production and 15.3% of the world’s total NAND production.

The good news is that Samsung, the world’s largest NAND maker with a 34.5% market share, has enough inventory to supply customers until the middle of next month.

Micron, which has manufacturing facilities in the city, is also under strain from Xi’an’s restrictions. It says the downsizing of staff and contractors has affected the production of DRAM assembly and testing operations.

“We use our global supply chain, including our subcontractor partners, to help our customers service these DRAM products. We predict that these efforts will allow us to meet most of the needs of our customers, but there may be some delays in the near future when we activate our network, ”said Mikron. writes

This appears to have little impact on consumer prices for NAND and DRAM, and the local government expects the restrictions to be lifted within one to two weeks. But Samsung and Micron will no doubt be hoping the isolation doesn’t last longer than planned, especially given the current global chip shortage.


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