Samsung Cuts Chip Production In China after Covid-19 Outbreak

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Samsung has decided to temporarily halt activities at its chip factory in Xian, China. The decision, announced this Wednesday (29), was motivated by new outbreaks of covid-19 cases in that region of the country, associated with the Ômicron variant of Sars-CoV-2.

Located in the central region of the Chinese territory, the capital of Shaanxi province has registered a large number of people infected with the new coronavirus in recent weeks. As a result, the local administration decided to impose a series of restrictions to contain the spread of the disease, affecting the displacement of factory workers.

“Given the current situation at covid-19, we decided to temporarily adjust operations at our manufacturing facility in Xian, China. The decision was made in line with our commitment to protecting the health and safety of our employees and partners, which remains our top priority,” explained the South Korean giant.

In the statement, the big tech also said it is taking all necessary measures to prevent customers from being affected by the stoppage at the Chinese unit, amid a shortage of chips that has impacted several segments. Among the actions disclosed, is the expansion of the production capacity of processors in other industrial plants of the company.

Factory recently expanded

Opened in 2014, Samsung’s factory in Xian is the company’s only memory chip unit outside of South Korea. In 2020, it received new investments to be expanded, with the expansion process being completed in March of this year.

Since then, the unit has been responsible for producing about 40% of the NAND flash memory chips used by the company. All this capability will resume once the blockades in the city are lifted, a representative of the tech giant told the Korea Herald.