A lockdown in the Chinese city of Xi’an put in place to control a COVID-19 outbreak could end up benefiting Taiwan’s computer memory industry. That’s according to Liu Pei-chen, an expert at the Taiwan Institute of Economic Research.
On Friday, Liu said that the outbreak in Xi’an is manageable, and that the ongoing lockdown in the city, which began on Wednesday, won’t endanger the supply chain. However, the lockdown will affect the city’s significant computer memory industry. Xi’an is an important computer memory production base for Samsung as well as an important center for China’s domestic automobile industry.
Liu said that decreased production in China will drive memory prices up, which will benefit Taiwanese manufacturers. Liu also said that Taiwanese manufacturers may also be able to pick up orders that would otherwise have gone to factories in Xi’an.