Amid the Omicron COVID surge, new lockdowns in China are negatively impacting the semiconductor industry.
According to The Mercury News, the city of Xi’an is under some of the tightest restrictions since the original Wuhan lockdowns. Both Samsung and Micron are warning they will have to adjust operations as a result.
“New or more stringent restrictions impacting our operations in Xi’an may be increasingly difficult to mitigate,” Micron said.
The computer industry was especially hard-hit in the early days of the pandemic, and has struggled to catch up with demand ever since. Just as many companies were hoping for a return to normal, the Omicron variant is once again threatening to upend the progress that has been made.
The new lockdowns in China will likely only reinforce calls for semiconductor companies to diversify their manufacturing and supply chains so they’re not overly dependent on a single country.