[Update on Situation in Xi’an] Samsung’s Chinese chip plant returned to normal operation

January 26, 2022

Samsung semiconductor manufacturing facilities in Xian, China returned to normal operations on January 26.

Thanks to the Samsung team and partners for their hard work and commitment to ensuring business continuity for our customers.

The safety and well-being of our employees and partners is our top priority and we will continue to take all necessary steps to maintain a safe and healthy office.

January 12, 2022

On January 12, 2022, analysts said, the prolonged lockdown in the Chinese city of Xi’an would have minimal impact on the performance of Samsung Electronics, which has a chip manufacturing complex.

“The occasion will have minimal impact on the global supply of NAND flash chips,” Doh Hyun-woo, an analyst at NH Investment & Securities, wrote in his report.

The Xi’an-based business operated as usual for about a week before the chipmaker was forced to reduce production “in accordance with our commitment to protect the health and safety of our employees and partners”.

December 29

Samsung Electronics semiconductor plant in Xi’an, China is in the process of simply adjusting its production lines as the COVID-19 continues to spread.

It is in line with the company’s management approach to give first place to the safety and health of its employees.

Samsung Electronics does its part to ensure that customer service is uninterrupted by creating multiple resistances, including linking to global production lines.

December 24

On December 24, Samsung Electronics said that the memory chip complex in the Chinese city of Xian went into emergency mode as Chinese authorities implemented a lockdown to restrain the spread of the coronavirus.

The South Korean tech giant said the emergency action did not affect production, as it was making full use of factory workers living in the company’s dormitories.

The city’s health authorities imposed strict social distance measures on December 22 to slow the spread of the virus, urging its 13 million residents to stay indoors and ban unnecessary travel or activity.

The company is said to be considering measures such as reducing their contact with outsiders and consulting with Chinese authorities to allow the required workers to stay at the company facilities and continue working.

Samsung Electronics has so far invested more than $25 billion in the Xi’an manufacturing complex, Samsung’s only foreign facility that produces NAND flash memory chips.

The first plant was commissioned in 2014 and the second was last year in 2020. Together, with more than 3,300 employees, Zion Complex is expected to produce 40 percent of the company’s NAND Flash products.

According to analysts firm Trendforce, Samsung was the world’s largest NAND flash provider with a market share of 34.5 percent in the third quarter.