Micron Also Says "Xi'an Lockdown in China Will Impact Memory Production"

[Asia Economy Reporter Seulgina Jo] The US memory company Micron Technology has not escaped the fallout from the lockdown in Xi'an, China.

On the 29th (local time), Micron stated that the lockdown in Xi'an, Shanxi Province, China, where its factory is located, due to the COVID-19 situation, has inevitably impacted some computer memory production. Micron explained, "The Xi'an lockdown has reduced the local workforce, adversely affecting DRAM assembly and testing operations," and added, "We are adjusting the global supply chain to supply DRAM to customers, but short-term supply delays may occur."

This statement was released following Samsung Electronics' decision the previous day to reduce local production lines after operating in emergency mode since the lockdown order. Xi'an, with a population of 13 million, has been under lockdown, including a ban on going outside, since the 22nd. Micron currently operates a semiconductor back-end (packaging and testing) factory in this region.

Market research firm TrendForce said, "In Micron's case, the scale of the Xi'an facility is small relative to the company's total volume, so the impact will not be significant," but also noted, "It could affect DRAM spot prices in the short term." Due to the semiconductor process typically taking several months, a considerable amount of time is inevitably required from production line normalization to supply. Bloomberg News also forecasted, "Supply delays may occur as the supply chain is newly adjusted."

The number of new COVID-19 cases in Xi'an, which had been hitting record highs daily after the outbreak of cluster infections, slightly decreased from 175 on the 27th to 151 on this day. However, since China is maintaining a 'zero-tolerance policy' for preemptive COVID-19 prevention ahead of the Beijing Olympics, it is uncertain how long the lockdown measures will continue. Bloomberg News, citing experts, said, "The spread of infection will continue at least until the end of January, just before the Beijing Olympics," and evaluated, "This Xi'an lockdown is the strictest lockdown since Wuhan in 2020."

This content was produced with the assistance of AI translation services.