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Power Shortages Forced China Factories to Halt Production
Power outages in China have put millions of homes into darkness and temporarily shut down factories. The Chinese government has also temporarily shut down power to several major semiconductor foundries with intention to regularly suspend industrial electricity supplies. These measures are being imposed as a way to promote efficiency amid coal shortages and the tightening of emissions standards.
These power outages are creating big issues surrounding the global supply chain for the electronics industry. Several chip factories in China have halted production temporarily including global semiconductor suppliers. Companies now dealing with the downstream impacts of this power shortage include, but not limited to, Apple, Intel, Nvidia, Qualcomm and Tesla.
Below is a list of the semiconductor suppliers impacted by these power shortages and specific details on the impact to their business:
| Semiconductor Foundries | Production | Announcement |
|---|---|---|
| Chang Wah Technology | Semiconductor packaging material supplier for NXP and Infineon | Factory in Suzhou, Jiangsu suspended production from Sept 26-30 |
| ASE Kunshan | Semiconductor assembly, test, substrate and board assembly, wire bonding and advanced fine pitch tech | Factory in Kunshan, Jiangsu has suspended production from Sept 27-30 |
| ESON Precision Ind Co | Consumer electronic components and moulds, mechanical parts for light-emitting diodes | Kunshan, Jiangsu factory halted production from Sept 26-30. Will maintain inventory operations and arrange production during holidays to meet demands. |
| Unimicron | PCB manufacturing | All three subsidiaries in China halted production from Sept 26-30. |
| Concraft Holding Co | Speaker component supplier for Apple’s iPhone | Factories in Suzhou City will suspend production for five days until Sept 30. |
| Pegatron | Semiconductor supplier for Tesla and Apple iPhone | Factories in Kunshan and Suzhou will suspend production according to Beijing restrictions. |
| UMC | Chip and wafer fab for tune radio and consumer electronics power supply | Reported no impact at China plants. |
| TSMC | Chip and wafer fab for Apple, AMD, and Nvidia | Reported no impact at China plants. |
Expert economists have reduced their growth forecast for Chinese production. The outlook for annual growth is now down to 7.7%. Original forecast were 8.2% in estimated growth.
How will this affect your supply chain?
The power outages in China have resulted in nearly a week of inactivity at some of the largest global semiconductor foundries.
Our data and expertise help you identify components at risk and gain an in-depth view into their lifecycle statuses. We’ll even provide alternative parts with sourcing information.
Also, in response to a need for insights and forecasted impacts, SiliconExpert developed a support mechanism that can help customers identify broader risks in their supply chain. This service combines factors of geo-location and known risks in a proprietary formula to determine the overall supply chain risk score by the supplier and by part number.
