Shanghai’s Covid Lockdown Forces Scramble by Tech Supply Chain

Semiconductor and electronics producers in Shanghai and neighboring areas are scrambling to keep plants running as Covid-related restrictions disrupt businesses, putting more pressure on the already fragile global tech supply chain.

Shanghai hosts many of China’s leading semiconductor manufacturers including the country’s largest chip foundry, Semiconductor Manufacturing International Corp. (SMIC). In 2021, integrated circuit sales in Shanghai rose 24.5% from the previous year to 257.9 billion yuan ($40.4 billion), a quarter of the national total. The city is also home to more than 200,000 semiconductor industry workers, nearly 40% of the country’s total.