Although Samsung has made a pretty good profit in chip production in recent years, the Covid-19 virus, which broke out again in China, tripped Samsung's increasing earnings in chip production.
The Covid-19 virus, whose prevalence has increased in China in the last few days, has forced the police to take strict measures in Shanghai. Reports indicating that the situation in the city of Xian has deteriorated also shows that the production of Samsung's microchip factory in Xian has also been stopped between April 16 and tomorrow - April 19-. The Xian factory, which produces 250,000 semiconductors in a month, accounts for at least 40% of Samsung's microchip production.
It should be noted that there is no cause for concern for now, as the closing time of the facility is relatively short. However, if the plant downtime is prolonged or a second shutdown occurs due to the increase in the spread of the epidemic, the situation could become a problem for Samsung and consumers as it will cause delivery delays and production abandonment.
Samsung would move its production to Texas, which was established on 1200 acres of land, especially after the chip crisis that started with the pandemic. But there is still no information about the date. According to the data shared by the China Chamber of Commerce, the quarantine process in Shanghai has affected 57% of the companies. Apple also seems to be in trouble because of the closure of Quanta Computer, Apple's supplier.
What do you think about this subject? Do you think Samsung will be able to get rid of this with the least damage?