Samsung Electronics and Micron Technology warn that tightening restrictions at China’s major industrial hubs will affect their chip manufacturing.
The two world’s largest chipmakers say they need to change operations in the city of Xi’an which is facing one of the worst community outbreaks of Covid-19.
According to Samsung, it had to temporarily adjust operations at the manufacturing plant for NAND flash memory chips, which are used for data storage in data centers, smartphones and other technological gadgets.
The South Korean giant added further, protecting its workers in the city remains a priority, and it plans to take all necessary measures including leveraging its global manufacturing network to ensure their customers are not compromised.
Meanwhile, U.S. chipmaker Micron said the closure in the city of Xi’an could cause delays in the supply of its DRAM memory chips, which are widely used in data centers.
The slowdown in production is seen to exacerbate the issue of chip shortages facing the rest of the world at the moment.
Xi’an is a city located in Shaanxi province, has reported a total of 1,117 cases in the latest outbreak. Following that, it announced sanctions on its 13 million residents last week, making it among the largest in China since Wuhan, which has involved 11 million people.
