China’s electricity curtailment impacts on Apple iPhone
China’s “dual control of energy consumption” has continued to affect the company’s power curtailment and production suspension. Several key suppliers of Apple and Tesla have announced the suspension of production in China in response to Beijing’s energy consumption policy, but this matter will endanger the supply chain. Stability, especially at this time is about to enter the peak Christmas season demand for electronic products including the new iPhone.
Hon Hai’s related company Yisheng Precision Industry and an important component supplier of Apple and Tesla said on Sunday that the Kunshan plant in Jiangsu will temporarily suspend production from Sunday to Friday, in line with the city’s policy of suspending power supply for industrial use. Yisheng has announced: “During the shutdown period, it will temporarily maintain operations with an inventory. It is expected that production will be arranged during holidays or even holidays to meet customer demand for shipments.”
The timing of China’s demand for energy conservation and emission reduction comes at a time when the confidence of investors in the global market has been shaken due to the Evergrande Group debt crisis. The economic impact caused by the current power ration may be even greater, further worsening the shortage of global supply chains.
Apple’s printed circuit board supplier Xinxing Electronics said that due to the suspension of industrial power supply in the greater Suzhou area from noon on Sunday to the end of the month, subsidiaries in Suzhou and Kunshan cooperated with the suspension and will coordinate production in other factories to meet customer demand for shipments.
The iPhone’s acoustic component supplier, Kang Fu Holdings, has a plant in Suzhou and also announced that it will stop work from the 5th to noon on Thursday. It will use inventory to support customer needs.
Nikkei reported that Pegatron has factories in Kunshan and Suzhou, and is currently operating as usual, but the generator is ready for further official notification. Hon Hai’s Longhua, Guanlan, Taiyuan, and Zhengzhou plants have not been affected by the power cuts as of Sunday.
Several chip packaging and testing service providers from Intel, Huida, and Qualcomm have received notices requesting plant shutdowns in Jiangsu Province for several days.
NXP, Infineon, and Changhua Technology, the semiconductor packaging material suppliers of NXP, Infineon, and ASE also announced that they will suspend operations from the evening of the 26th to the end of the month.
Beijing has recently watched closely that energy consumption in provinces such as Liaoning, Jilin, and Heilongjiang will continue to rise, vowing to impose stricter sanctions on those who fail to meet the standards. Other provinces such as Jiangsu, Zhejiang, and Guangdong, where many technology manufacturers have established production bases. , Also restricts industrial electricity. Strict control has affected a wide range of traditional industries, including coal and steel production, and electronic product manufacturing.
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