Jibang: The epidemic in Xi'an will affect Samsung's NAND Flash production and some crop rates

Source: Reuters

Jiwei network news, the municipal research agency TrendForce pointed out in its latest report that Samsung is currently affected by the epidemic lockdown in Xi'an mainly due to the difficulty of manpower shift arrangement, if the epidemic is not properly controlled, it cannot be ruled out that it will impact the production rate in the recent factory area, resulting in a slight decline in output.

Jibang Consulting pointed out that due to measures such as crowd control, Samsung must continue production with limited manpower. The company is now actively adjusting to reduce the impact on output, and the local government expects to return to normal within one to two weeks, although it is not ruled out that the outbreak has not been properly controlled.

It is reported that Samsung recently issued an announcement that due to the epidemic situation, it will temporarily adjust the operation of the Xi'an factory in China to protect the safety of employees as much as possible. At the same time, the Company will take all necessary steps, including leveraging its own global manufacturing network, to ensure that customers are not affected by this stalled operation.

Then the industry news said that it received a letter from Samsung that it is expected that the manufacturing capacity of NAND products may be affected by the epidemic in Xi'an, and the quotation will be temporarily suspended.

At present, Samsung's layout in Xi'an is mainly NAND Flash, with a monthly production capacity of about 120,000 pieces in the first phase and a monthly production capacity of about 130,000 pieces in the second phase, accounting for 42.3% of the company's NAND Flash production capacity and 15.3% of the global production capacity. In addition, Samsung is also continuing to expand in Xi'an, and its goal is to establish a 96-story V-NAND production base in China, but the progress has been delayed due to the impact of the epidemic.

(Proofreading/Yuki)