Samsung, Micron warn China's Xian lockdown could disrupt memory chip manufacturing

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Updated 30 December 2021
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Samsung, Micron warn China's Xian lockdown could disrupt memory chip manufacturing

  • The curbs could cause delays in the supply of DRAM memory chips

Samsung Electronics and Micron Technology, two of the world's largest memory chip makers, warned that strict COVID-19 curbs in the Chinese city of Xian could disrupt their chip manufacturing bases in the area.


The lockdown in the city puts further pressure on global supply chains and adds to a torturous year for exporters facing sharply higher freight costs even as prices for raw materials including semiconductors skyrocket amid the pandemic.


The curbs could cause delays in the supply of DRAM memory chips, widely used in data centres, Micron said on Wednesday.


The stringent restrictions, which went into effect earlier this month, may be increasingly difficult to mitigate and have resulted in thinner staffing levels at the manufacturing site, Micron added.


Samsung Electronics also said on Wednesday that it would temporarily adjust operations at its Xian manufacturing facilities for NAND flash memory chips, used for data storage in data centres, smartphones and other tech gadgets.


Seoul-based analysts said chips made in Samsung's Xian NAND plant mainly go to China with limited shipments heading overseas. Some of the biggest demand for the kind of chips made in the plant come from Chinese server companies, they added.


Chinese officials have imposed tough curbs on travel within and leaving Xian from Dec. 23, in line with Beijing's drive to immediately contain outbreaks as they appear.


The COVID-19 outbreak in Xian is the biggest seen by any Chinese city this year, with over 1,100 cases in total during the latest flare-up.


"We are tapping our global supply chain, including our subcontractor partners, to help service our customers for these DRAM products," Micron said in a blog post.


"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," the company said.


Micron added that it was working to minimize the risk of virus transmission and had employed measures including physical distancing and on-site testing and was encouraging vaccination.


Samsung's memory chip operation in Xian is one of the largest foreign projects in China. The tech giant has two production lines in Xian making advanced NAND Flash products, which account for 42.5 percent of its total NAND flash memory production capacity and 15.3 percent of the overall global output capacity, according to analysis provider TrendForce.


Samsung said in a late October earnings call that it had entered the July-September quarter with low inventory of NAND chips, and intended to normalise levels during that quarter.


It is expected to announce October-December earnings results in January.


Education spending surges 251% as students return from autumn break: SAMA

Updated 12 December 2025
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Education spending surges 251% as students return from autumn break: SAMA

RIYADH: Education spending in Saudi Arabia surged 251.3 percent in the week ending Dec. 6, reflecting the sharp uptick in purchases as students returned from the autumn break.

According to the latest data from the Saudi Central Bank, expenditure in the sector reached SR218.73 million ($58.2 million), with the number of transactions increasing by 61 percent to 233,000.

Despite this surge, overall point-of-sale spending fell 4.3 percent to SR14.45 billion, while the number of transactions dipped 1.7 percent to 236.18 million week on week.

The week saw mixed changes between the sectors. Spending on freight transport, postal and courier services saw the second-biggest uptick at 33.3 percent to SR60.93 million, followed by medical services, which saw an 8.1 percent increase to SR505.35 million.

Expenditure on apparel and clothing saw a decrease of 16.3 percent, followed by a 2 percent reduction in spending on telecommunication.

Jewelry outlays witnessed an 8.1 percent decline to reach SR325.90 million. Data revealed decreases across many other sectors, led by hotels, which saw the largest dip at 24.5 percent to reach SR335.98 million. 

Spending on car rentals in the Kingdom fell by 12.6 percent, while airlines saw a 3.7 percent increase to SR46.28 million.

Expenditure on food and beverages saw a 1.7 percent increase to SR2.35 billion, claiming the largest share of the POS. Restaurants and cafes retained the second position despite a 12.6 percent dip to SR1.66 billion.

Saudi Arabia’s key urban centers mirrored the national decline. Riyadh, which accounted for the largest share of total POS spending, saw a 3.9 percent dip to SR4.89 billion, down from SR5.08 billion the previous week.

The number of transactions in the capital settled at 74.16 million, down 1.4 percent week on week.

In Jeddah, transaction values decreased by 5.9 percent to SR1.91 billion, while Dammam reported a 0.8 percent surge to SR713.71 million.

POS data, tracked weekly by SAMA, provides an indicator of consumer spending trends and the ongoing growth of digital payments in Saudi Arabia. 

The data also highlights the expanding reach of POS infrastructure, extending beyond major retail hubs to smaller cities and service sectors, supporting broader digital inclusion initiatives. 

The growth of digital payment technologies aligns with the Kingdom’s Vision 2030 objectives, promoting electronic transactions and contributing to the nation’s broader digital economy.