Until tomorrow, April 19, 2022, the Samsung semiconductor factory located in Xian is ordered to stop all production due to the exponential increase in COVID-19 cases in the country. If the current containment is longer than expected, the manufacturer’s entire smartphone division could be impacted.
For the past few days, the situation regarding the spread of COVID-19 in China has been very worrying. In Shanghai, the extremely strict containment measures are pushing the population to revolt, at the risk of facing even stronger repression by the police. Other cities, such as Xian, are also facing an upsurge in cases.
However, Xian is home to, among other things, one of Samsung’s semiconductor factories. And not just any: in just one month, 250,000 semiconductors passed through its doors, i.e. no less than 40% of total production from the Korean manufacturer. A production that may soon be undermined. Indeed, since April 16 and until tomorrow, the factory has been ordered to put their activities on hold.
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For now, there is no need to worry, given the relatively short duration of the plant closure. On the other hand, if the latter were to lengthen, the situation could quickly become problematic for Samsung. According to BusinessKorea, Samsung may have to do without a large part of its semiconductor production, which could lead to delivery delays.
If the shortage of chips has so far made Samsung’s good times, luck could soon change sides. According to the China Chamber of Commerce, about 57% of companies based in the country have experienced difficulties following the Shanghai lockdown. In addition, the PC sector could also be impacted, in particular Apple which must now deal with the closure of supplier Quanta Computer.
Samsung, for its part, is already planning toexport its production to Texas, in a huge huge factory occupying 1200 acres. The date of its opening is not yet known.
Source : BusinessKorea
