Shanghai’s key chip factories look to ensure production and deliveries as city comes under phased Covid-19 lockdown

Ann Cao in Shanghai South China Morning Post- Published @ 9:00am, 30 Mar, 2022

• The Pudong New Area is home to a number of factories from leading chip businesses, such as SMIC and Hua Hong
• The local government has allowed companies to operate either under a ‘closed loop’ system or allow their employees to work-from-home

Chip factories located in the semiconductor-manufacturing area of Shanghai are scrambling to ensure production and delivery after the city imposed a strict, phased lockdown from Monday to battle an outbreak of the Omicron variant of Covid-19.

Chip companies to the east and south of the Huangpu River, placed under lockdown from Monday until April 1, are facing varying degrees of disruption to their workflow and supply chains, although operations at some of the area’s largest companies remains normal, according to company statements and analysts.

The Pudong New Area is home to a number of factories from leading businesses such as Semiconductor Manufacturing International Corp (SMIC) and Hua Hong Semiconductor. Meanwhile, suburban Songjiang houses factories belonging to Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chip maker.