Samsung’s Xian plant could be impacted by extensive lockdown

Samsung’s semiconductor plant in Xian may affect its semiconductor manufacturing capabilities. The latest news is circulating on the internet. “Buisnesskorea” reportedly made public the news that a partial closure would be imposed in China from 16 April to 19 April 2022. This is to prevent the spread of COVID-19.

Earlier when there was a lockdown on December 22, 2021, Samsung Electronics operated the facilities flexibly. Samsung had done this by successfully keeping the operating staff inside the factory.

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This time also the plant has no such operational problems as the Xian authorities have allowed essential personnel to work at the production facilities and workplace, but if the lockdown continues, the production could be disrupted.

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If the logistics are blocked due to concern about the spread of covid-19, the supply of raw material may get blocked, and due to this, there can be a delay in semiconductor shipment.

The U.S Chamber of Commerce in China estimated that the lockdown in Shanghai has caused a logistic disruption of 57% of the companies that are doing logistic business in china.

As of now, The Quanta Computer which is the main producer of Apple’s MacBook has also halted the production facility and may also get affected due to this partial interruption.

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