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Sunday, October 17, 2021

Some Apple, Tesla suppliers have suspended production in China amid power pins

Several Apple Inc. and Tesla Inc. suppliers have suspended production at some Chinese factories to comply with the strict energy consumption policy, jeopardizing the supply chain for the highest season for electronics materials.

The two major Taiwanese chipmakers, however, said their Chinese facilities were working normally.

Analysts around the world say that China’s coal supply and tight discharge standards have caused contraction in heavy industry in various regions, which has led to a drag on the country’s economic growth rate.

Apple supplier Unimicron Technology Corporation said late Sunday (September 26th) that its three Chinese subsidiaries “shut down production from midnight on Sept. 1 to midnight on Sept. 23 to comply with local governments’ power restriction policy.”

The Taiwanese manufacturer of printed circuit boards said it did not expect a significant impact because other plants would produce.

Hon Hai Precision Industry Co. of Taiwan. Ltd (Foxconn) ‘s partner Eson Precision Ind Co. Ltd, in a statement, said it had suspended production from September 19 to 24 at the convenience of the Chinese city of Kunshan.

Conflict Holding Co., Ltd., the supplier of Apple’s iPhone speaker components and owner of manufacturing plants in Suzhou City, said it would suspend production for five days until noon on September 30 and use inventory to meet demand.

Read Also:  The California Pension Fund has increased its investment in Chinese A-shares as the SEC scrutinizes Chinese stocks.

Chipmakers United Micro Electronics Corporation (UMC) and Taiwan Semiconductor Manufacturing Co., Ltd. told Reuters they had no impact on the China plant.

“UMC’s Hejian Fab in Suzuki currently operates at full capacity of 80,000 plus wafers per month,” said the Taiwanese firm, whose clients include Qualcomm Inc.

A person familiar with the matter told Reuters that contract maker Foxconn had seen a “very small” impact on the production of facilities in Kunshan. Foxconn had to “adjust” a small portion of its capabilities, including the production of non-Apple notebook computers, adding that the company saw no impact on other major manufacturing centers in China.

A second person said the company had to relocate some of the Kunshan workers in late September to early October.

Apple’s main supplier Foxconn declined to comment.

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This News Originally From – The Epoch Times

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