Samsung Electronics faces laptop shipment delays after China's Covid lockdowns China lockdowns trigger supply chain disruption
Translated by Kim So-in 공개 2022-04-21 08:10:51
이 기사는 2022년 04월 21일 08:07 thebell 에 표출된 기사입니다.
South Korea’s electronics companies including Samsung Electronics have taken a hit from China’s zero-Covid policy.Samsung Electronics recently sent a letter to some of its clients notifying them of the possibility of shipment delays, according to industry sources on Tuesday. Its Suzhou laptop plant is in operations, but it is expected to face shipment delays due to supply chain disruptions.
Earlier this month, Chinese authorities have extended their lockdown of Shanghai to cover all its 25 million people after a fresh surge in Covid cases. Suzhou and Xi’an are also keeping their residents indoors, alongside Kunshan and Shenzhen.
There is no setback in Samsung Electronics’ own production line. There is a possibility of adjusting production in the future, but the company has already established an internal plan to better cope with the shutdown. It also stockpiled inventory to prepare for emergencies at each stage of the supply chain.
The problem is with Samsung Electronics’ suppliers. The delay in the laptop production at the Suzhou plant was also caused as part suppliers halted operations because of the lockdown. MacBook manufacturer Quanta Computer also halted production in Shanghai, putting supplies of Apple’s top-tier laptops at risk
Korea Electronics Association started a process to look into the situation at seven major Korean companies that operate in China to understand how they respond to small and medium-sized business partners that are relatively weak in supply chain management.
Shanghai is the country's leading industrial and manufacturing center, near Suzhou, Hangzhou and Nanjing. China's strict Covid measures have also stopped truckers from unloading containers at the port of Shanghai, the largest container port in the world.
LG Electronics seems to be less affected by China’s Covid lockdowns. It already experienced semiconductor shortage over the past two years due to the pandemic and is now capable of systematically and stably responding to external risks through efforts like supply chain diversification.
Impact on LG Electronics’ parts suppliers is also limited. LG Display and LG Innotek, LG Electronics’ major suppliers, are operating in China in the form of sales entities instead of production plants, which limits impact from the lockdowns.
A rise in the cost of raw materials, however, is weighing on the companies. Market research firm Omina forecast LCD panel prices, which have declined since last August, to increase by more than 10% until June. China accounts for more than half of LCD production and major TV set makers such as Samsung Electronics and LG Electronics purchase a high proportion of the production. (Reporting by Hyun-ji Sohn)
< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재, 재배포 및 AI학습 이용 금지 >
관련기사
- Samsung's Exynos chipset may grab bigger market share in second half
- Samsung plans to make own chipset for Galaxy devices
- Samsung Display seeks new opportunities in QD-OLED
- LG and Samsung to compete in smart home platform
- LG Electronics enjoys patent profits in first quarter
- LG Electronics sells mid-priced smartphone plants in China to Inspur
best clicks
최신뉴스 in 전체기사
-
- 나이스평가정보, '아인스미디어·웰컴즈' 인수
- 폴라리스오피스 자회사, 엔비디아 '인셉션 프로그램' 합류
- 소룩스, 美 Mount Sinai 의대와 ‘인지건강 특수조명 공동개발’ 계약
- 세경하이테크, 자회사 세스맷 친환경 확장 '순항'
- [Red & Blue]지오릿에너지, CB 주식전환 물량 출회 부담
- 다보링크, 해외시장 공략·신사업 추진 본격화
- [Red & Blue]포스코 손잡은 '협동로봇' 뉴로메카, 반등 '언제쯤'
- [이사회 모니터]황원경 본부장, 상상인증권 사내이사 합류
- 맥시칸, '지사 역할' 하림유통 합병 '효율성 제고'
- [아난티는 지금]얽히고설킨 지배구조, ESG 'D등급 딱지'