A strict lockdown put in place in Xian to contain COVID-19 in light of the Omicron variant has resulted in Samsung Electronics reducing its chip production in the region. The company through a press release said that it has “decided to temporarily adjust operations” at its chip factory in the city.
The press release further stated that the decision was made to protect the health and safety of our employees and partners, which remains the top priority. Necessary measures will also be taken to ensure that consumers are not affected, including leveraging Samsung’s global manufacturing network.
Chinese authorities had earlier on December 22 enforced a lockdown in Xian, prompting an emergency response from Samsung which shifted all of its available personnel on the production line to continue operating at maximum capacity.
“Due to the lockdown, there are difficulties in employees’ commutes and logistics, so it was inevitable to adjust operations. When the lockdown is lifted, operations will be normalized,” a company official told Korea Herald.
The Xian factory is Samsung’s only overseas memory chip factory and has been operational since 2014. Roughly 40% of the company’s NAND flash chips originate from it.
Meanwhile, Samsung SDI’s electric vehicle battery factory in China seems to be unaffected by the lockdown, with a company official saying that it’s currently “in normal operations.”
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