In the last few days, the situation of the spread of Covid-19 has begun to worry. In Shanghai for example, there are strict restrictive measures from the government.
In addition, other cities such as Xian are also facing a spike in cases. Xian is home to one of Samsung's semiconductor manufacturers.
Not just any factory, Samsung's factory in Xian produces 250 thousand units of semiconductors. This amount is equivalent to 40 percent of Samsung's total semiconductor production.
Unfortunately, due to Covid-19 restrictions, this Samsung factory was asked to postpone its production activities. The production delay was carried out from April 16-20, 2022.
Citing Gizchina, Tuesday (19/4/2022), for now there is no reason to worry about Samsung's semiconductor stock, because the duration of factory closures is still relatively short.
The problem is, if the factory shutdown is extended, it will be a problem for Samsung.
Media Business Korea reported that Samsung might lose some of its semiconductor production and this would cause shipping delays.
If a chip shortage occurs, Samsung's business will be disrupted. According to the China Chamber of Commerce, about 57 percent of businesses based in the country are experiencing difficulties due to the stringent restrictions in Shanghai.
As a result, the PC and computer sector can also be hampered by production. Apple, for example, is currently being affected by its computer production due to the closure of Quanta Computer's manufacturing production.
Previously, Samsung had planned to move their semiconductor factory to Texas. Samsung will occupy a factory of 1,200 hectares. Unfortunately, it is not yet known when Samsung's semiconductor factory in Texas will operate.
Previously, the iPhone factory owned by Pegatron stopped iPhone production in two locations, namely in Shanghai and Kunshan.
This Taiwanese manufacturing company stopped iPhone production at the two factories above to comply with Chinese regulations, in terms of limiting the spread of Covid-19.
The Nikkei Asia report said China implemented a stricter policy in response to the recent increase in Covid-19 cases in the country.
Citing The Verge, Wednesday (13/4/2022), the closure of this factory has a significant impact on Pegatron and Apple.
The same report said the closed Pegatron factory was the only iPhone manufacturing hub. Pegatron alone is responsible for making about 20-30 percent of all iPhone requests.
“Pegatron hopes to resume production soon, although it is not clear when production will resume,” Nikkei Asia wrote. Apple did not immediately reply to a request for comment.
The same report revealed that Quanta, the manufacturing company that helped make the MacBook, also stopped production at a factory in Shanghai.
Despite the shutdown of iPhone factories, throughout the pandemic, supply chain issues have persisted and affected companies in various industries.
Previously, Tesla also had to close its factory in Shanghai in response to restrictions in China. Not to mention, the problem of global chipset scarcity has made it difficult to produce various electronic devices.
Previously, Foxconn, the manufacturer and supplier of Apple to Samsung, has just announced that it has temporarily closed its factory in Shenzhen, China.
It is known, the closure of the Foxconn factory and other manufacturers came after the authorities announced a lockdown due to the increase in Covid-19 cases in the city.
Business sectors providing non-essential services were ordered to close, and everyone in the city will be tested for Covid-19 after reports of 60 new infections on Sunday.
Citing The Verge, Monday (14/3/2022), the manufacturing giant said it would shift production to other locations outside Shenzhen.
For your information, Foxconn is the world's largest electronics manufacturer, and an important supplier to world-renowned technology companies, including Apple and Samsung.
In addition to Foxconn, tech giants such as Huawei, Tencent and Oppo also have headquarters based in Shenzhen, located near the border with Hong Kong.
Even so, in about two weeks, the iPhone factory at Foxconn's production facility in Shenzhen was operational again.
In a Reuters report, Foxconn stated, “Basically restarting work orders and normal production operations at the Longhua and Guanlan plants.”