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Samsung cuts down chip production at its Xi’an plant in China

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Last updated: December 29th, 2021 at 08:21 UTC+02:00

Samsung has announced that it has decided to “temporarily adjust operations” at its chip plant in Xi’an, China, due to COVID-19 concerns. The company said in its press release that it took this step to protect the health and safety of its employees.

The company’s only memory chip plant outside of South Korea is in Xi’an, and it accounts for 40% of Samsung’s NAND flash manufacturing capacity. The South Korean firm said that it would take all necessary steps and measures, including using its global manufacturing network, so that its clients are not affected.

China had imposed a strict lockdown in Xi’an on December 22, 2021, but Samsung’s chip manufacturing plant was still fully operational. However, since the company’s employees are now facing issues related to commuting, the company decided to lower the chip production.

A company official told Korea Herald, “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.

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