Micron Technology Inc said its output of some computer memory will be hit by the closing of the Chinese city of Xi’an aimed at limiting a fresh outbreak of the Covid-19 virus.
The US company uses a test and assembly facility located in Xi’an. The chipmaker said it will be able to meet most of its customer demand, but new supply arrangements may cause delays.
"We are also working with local government officials to identify solutions that will enable us to minimise impact of the situation and maintain operations at the site safely,” the Boise, Idaho company said in a statement. "We are tapping our global supply chain, including our subcontractor partners, to help service our customers for these DRAM products.”
Micron’s announcement follows similar news earlier from a larger rival, South Korea’s Samsung Electronics Co, which said its production in the Chinese city also will be affected. The two companies are among the largest makers of chips that provide storage and short-term memory in everything from smartphones to supercomputers.
Micron said it’s taking "appropriate measures” to minimise the risk of the virus at the plant, including on-site testing, physical distancing and temporarily reducing the "workforce density.” – Bloomberg