Global Chip Shortage To Worsen After Chinese City Lockdown; Smartphones, PCs Affected?


Global chip shortage has left a dent on nearly all segments of the economy. Smartphones, PCs, data centers, automobiles, and others are heavily affected. Just as things seem to be picking up, the crisis has another roadblock to deal with now. A Chinese city lockdown could worsen the chip shortage, says a Reuters report.

Global Chip Shortage To Worsen After Chinese City Lockdown

Chinese City Lockdown And Chip Shortage

The report comes from Micron Technology Inc from the Chinese city of Xian. To note, Micron Technology is one of the world's biggest memory chip suppliers and could be the epic center of the new wave of crisis. This is because the COVID-19 lockdown in Xian city has created more delays in the supply of its DRAM memory chips.

Chinese officials have imposed tough curbs on travel and a strong imposition lockdown in Xian from December 23. The stringent restrictions have made it increasingly difficult for firms like Micro Technology to cater to the supply chain. The lockdown and other measures have also led to thinner staffing levels at its manufacturing site, causing more delays.

"We are tapping our global supply chain, including our subcontractor partners, to help service our customers for these DRAM products. We project that these efforts will allow us to meet most of our customer demand, however, there may be some near-term delays as we activate our network," Micron said in a blog post.

The company explains that DRAM memory chips are widely used in data centers. The company is currently working on minimizing the risk of virus transmission, falling in line with the Chinese government's decision to immediately contain virus outbreaks as and when they appear. Measures like physical distancing and on-site testing are being deployed at Micro Technology.

Effect On Smartphones, PC?

The global chip shortage has had a massive effect on smartphones and PCs for the past year. This is especially true for affordable and budget smartphones as they help push sale numbers for manufacturers. A few months ago, it looked like the crisis could be contained as production was gradually picking up. However, the latest lockdown in Chinese cities will once again affect all gadgets worldwide.



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