Due To Covid-19 Lockdown In China, Samsung And Micron Warn That It May Impact The Production Of Chip
The base area of chip-making in China, the Xian city will hold a lockdown due to the spread of Covid-19. Hence, the two largest chip-making companies Samsung Electronics and Micron Technology warned that it will affect the manufacture of chips.
The curb of Covid-19 would cause a delay in the supply of memory chips. For the lockdown, a lot of global supply has been delayed or it is costing a lot more than the original price.
Micron said that earlier this month for some restrictions the manufacturing has caused a lot of damages.
Samsung also added that the manufacturing in Xian city is facing problems; this factory especially makes NAND flash memory chips which are vastly used for data storage in data centers and smartphones.
Samsung’s Xian NAND plant mainly delivers to China heading overseas. Mostly the demand comes from the Chinese server companies.
There are a lot of strict restrictions to travel in and leaving from Xian. Chinese officials are enforcing so many restrictions because outbreaks are showing in Beijing.
Micron said in a blog, ‘We are tapping our global supply chain, including our subcontractor partners, to help service our customers for these DRAM products’.
The company also announced that by these efforts they are trying to meet the customer’s demand as much as possible.
One of the largest projects in China right now is Samsung’s memory chip operation in Xian. The company has to produce lined-up productions of advanced NAND Flash products. It has accounted for 42.5% of the total NAND flash memory production and 15.3% of overall global output capacity.
Samsung has said in October that all the earnings calls of the July-September quarter with the low inventory of NAND chips would have been normalized during the quarter.
In January there might be an announcement of October-December earnings.
I am Darryl Broadhurst and i give investors an insight into the most recent news hitting the “Technology” sector in Wall Street. I have been an independent financial adviser for over 11 years in the city and in recent years turned my experience in finance and passion for journalism into a full time role. I perform analysis of Companies and publicizes valuable information for shareholder community.
