A view of Samsung Electronics’ semiconductor plant in Xi’an, China, which was completed in 2014 and is producing NAND flash memory. Provided by Samsung Electronics
Samsung Electronics has decided to partially reduce production lines at its semiconductor plant in Xi’an, China, where city lockdown has been imposed due to the spread of COVID-19.
Samsung Electronics announced on the 29th, “As the spread of Corona 19 continues, we are flexibly adjusting the production line at the Xi’an semiconductor plant in China.” “It is in accordance with the company’s management policy that the safety and health of its employees be the top priority,” he said.
NAND flash semiconductors are being produced at Samsung Electronics’ plant in Xi’an, China. It is Samsung Electronics’ only overseas memory factory. Plant 1 has been in operation since 2014, and Plant 2 started the first phase investment in 2018 and started shipping products in March of last year. The Xi’an plant is responsible for 42.5% of Samsung Electronics’ total NAND flash production. It is a large-scale facility that accounts for 15.3% of the global NAND flash supply.
On the 22nd, when the city of Xi’an implemented a de facto lockdown, Samsung Electronics switched its factory to an emergency operating system. In Xi’an, a stay-at-home order was issued to block movement, and all schools, offices, and public institutions were closed except for essential facilities such as hospitals and supermarkets.
There is even a forecast that this measure will have an immediate impact on global semiconductor prices. Although there is still a considerable inventory of products in the market, it is analyzed that there may be a short-term price increase due to additional orders from companies who are concerned that the semiconductor supply shortage will be prolonged.
TrendForce, a semiconductor market research firm, said, “Samsung Electronics has sorted out most of the memory semiconductor shipments at its Xi’an plant from the end of this year to mid-January next year. cannot be excluded,” he explained. TrendForce predicted that the average NAND flash price in the first quarter of next year would fall 10-15% from the previous quarter.
Samsung Electronics plans to reorganize its production system so that there is no disruption to the overall supply by operating domestic production lines. A Samsung Electronics official said, “We are in a situation where we have no choice but to enter into flexible operations such as production control because logistics and personnel movement are not smooth. emphasized.
the sky reporter ahn708@hankookilbo.com
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