Violent crisis emanating from China affecting the global chip industry

Two of the largest chip makers in the world have warned outbreaks of coronavirus and its variants infections and a rigorous shutdown in a major Chinese manufacturing center are hindering their operations.

In a statement, Samsung and Micron said they should adjust their operations in the northwestern Chinese city of Xi’an, which is experiencing one of the worst coronavirus pandemic outbreaks in the country. Instead, authorities responded by adopting new precautionary measures and measures on a scale rarely seen since the closure in Wuhan, the first center of the outbreak.

A recent report revealed that any slowdown in manufacturing from the city risks exacerbating the global chip shortage, a crisis in course that has limited the supply of everything from iPhones to new ones auto, according to CNN.

Intel CEO Pat Gelsinger said the global chip shortage is set to continue into 2023 as global demand continues to rise, putting more pressure on suppliers to maintain production.

Earlier, Samsung revealed it had to “temporarily regulate operations” in Xi’an city. The South Korean giant added that the protection of its workers in city ​​remains “a top priority” and plans to take “all necessary steps, including utilization of the company’s global manufacturing network, to ensure customers are not affected.”

US chip maker Micron also said that the closure of the Chinese city of Xi’an could affect the production of DRAM memory chips, which are used in computer. The company was forced to reduce its workforce at the site.

“New or stricter restrictions affecting our Xi’an operations may be increasingly difficult to loosen,” the company said.

According to available data, the ancient city of Xi’an in Shaanxi province recorded 1,117 cases of infection in the recent Corona virus outbreak. Authorities have started test in the whole city and imposed a strict lockdown on its 13 million residents last week. The government has also closed schools, public places and transport, the largest measures in China since 11 million people were isolated in Wuhan in January 2020.

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