It turns out that Mandatory power outages in many provinces in China So far, it has caused more problems than originally anticipated. Obviously, ASE Technology and GlobalWafers have been hit by industrial power outages.
Local authorities in China’s Jiangsu, Zhejiang and Guangdong provinces have not cut off the power supply to TSMC and other foundries, which has caused some The best gaming CPUHe UMC, because they have a continuous production cycle, cannot stop and restart processing wafers without any consequences. Therefore, for now, China’s chip production will not be affected. In addition, there are other companies that can continue to use diesel generators to achieve their shipment targets.
But there is a problem. Jiangsu, Zhejiang, Guangdong and other provinces are production centers and have their own supply chains. If some companies stop production, other companies will also be affected because they cannot obtain necessary supplies in time.
According to reports, chip testing and packaging giant ASE Technology, which provides services to almost all fabless chip designers including AMD, has notified its customers that due to restrictions, its Kunshan production facility will not be available before September 30 Operation, reporting Digital age. According to reports, the announcement caused the company’s share price to fall by 2.6% Focus on TaiwanAt the same time, the company has not issued an announcement on the Taiwan Stock Exchange, which has little impact on its business.
As the world’s largest outsourced semiconductor assembly and testing (OSAT) company, ASE has manufacturing plants in many countries and regions, so the suspension of production in Suzhou will have an impact on the customers served by these plants. The company said it was shipping products from the facility early last weekend to minimize the impact of the forced power outage on its customers. However, it seems that there may be some delay. A production delay of one or two days may not sound noticeable, but it will cause delays downstream in the supply chain, which may cause serious problems with sea or air transportation.
Although TSMC and UMC were not directly affected by the power outage, their partners in the region were affected.Wafer supplier GlobalWafers was ordered to suspend production, report Computer base. GlobalWafers also did not issue any announcements to TSE. It is unclear whether TSMC and UMC will miss any supply from GlobalWafers or other companies in the region due to power outages.
Hundreds of companies in these three provinces are affected by the country’s decision to cut energy consumption and carbon dioxide emissions. Therefore, the short-term impact on the economy and local supply chain has yet to be determined.
In the long run, the company will make adjustments to offset the impact of mandatory temporary energy cuts on its business. Some will introduce night shifts on days when energy supply is unlimited, while others will increase production in other regions.