SK hynix sets up makeshift tents in preparation for potential lockdown in China

SEOUL, July 5 (Yonhap) -- SK hynix Inc. said Tuesday it has set up makeshift tents for workers in its chip fabrication factory in Wuxi, China, to prevent a potential citywide COVID-19 lockdown from disrupting its production.

Eastern cities in China, including Wuxi, have recently reported an increasing number of coronavirus infections, raising fears among businesses with production facilities there about yet another disruptive lockdown under Beijing's stringent zero-COVID policy.

The Chinese province of Jiangsu reported 145 new infections from July 1-3, and Wuxi, a key manufacturing hub, reported the biggest number, 104.

To eradicate virus outbreaks, Wuxi has tightened virus-related restrictions and advised people to work from home. The city has already enforced partial lockdowns on some residential buildings.

Setting up tents inside the factory's gymnasium was done as part of "precautionary measures" against a citywide lockdown, SK hynix said Tuesday, adding there has been "no disruption" so far to its operations.

China's draconian measures to stamp out coronavirus have taken a toll on the world's second-biggest economy, sending shockwaves globally and aggravating a supply crunch.

Earlier this year, China put Shanghai under strict lockdown for almost two months, bringing the country's biggest city and financial hub to a screeching halt and crippling operations of global manufacturers.

jaeyeon.woo@yna.co.kr
(END)