Micron said on Wednesday the lockdown could lead to delays
in the supply of its DRAM memory chips, which are widely used in data centres.
It said the stringent restrictions, which went into effect
earlier this month, may be increasingly difficult to mitigate and had resulted
in thinner staffing levels at its manufacturing site.
Samsung Electronics also said on Wednesday that it will
temporarily adjust operations at its Xian manufacturing facilities for NAND
flash memory chips, used for data storage in data centres, smartphones and
other tech gadgets.
Chinese officials have imposed tough curbs on travel within
and leaving Xian from December 23, in line with Beijing's drive to immediately
contain outbreaks as they appear.
"We are tapping our global supply chain, including our
subcontractor partners, to help service our customers for these DRAM
products," Micron said in a blog post.
"We project that these efforts will allow us to meet
most of our customer demand, however there may be some near-term delays as we
activate our network," the company said.
Micron added that it was working to minimize the risk of
virus transmission and had employed measures including physical distancing and
on-site testing and was encouraging vaccination.
Samsung has two production lines in Xian making advanced
NAND Flash products, which account for 42.5 percent of its total NAND flash
memory production capacity and 15.3 percent of the overall global output capacity,
according to analysis provider TrendForce.
Seoul-based analysts said chips made in Samsung's Xian NAND
plant would mainly go to the China market with limited shipments to overseas
destinations, and some of the biggest demand for the kind of chips made in the
plant would come from Chinese server companies.
Samsung said in a late October earnings call that it had
entered the July-September quarter with low inventory of NAND chips, and
intended to normalise inventory level during that quarter. It is expected to
announce October-December earnings results in January.
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