Apple, Nvidia and Tesla suppliers suspended production in China due to planned power outage

The situation could complicate already busy semiconductor supply chains.

Chinese President Xi Jinping confirmed at the UN General Assembly on September 22 that the country will completely abandon the construction of coal-fired power plants, stop increasing emissions by 2030 and become carbon neutral by 2060.
As part of compliance with the requirements to reduce emissions, the authorities temporarily cut off the supply of electricity to large production centers in at least three provinces: Jiangsu, Zhejiang and Guangdong. Such a procedure is planned to be carried out on a regular basis.
According to Nikkei Asia, from September 26 to September 30, work was suspended:
OSAT enterprises that are engaged in the assembly and testing of chips, serving companies such as Nvidia, Intel and Qualcomm.
Foxconn, the world’s largest contract OEM electronics manufacturer.
Supplier of chip packaging materials Chang Wah Technology.
The company Eson Precision Engineering, which supplies mechanical parts for Apple and Tesla.
Unimicron Technology, a major manufacturer of printed circuit boards (PCB).
The situation may complicate the already busy semiconductor supply chains, but some companies have already announced plans to compensate for interruptions by introducing night shifts, using local generators and transferring part of production to other plants.
The restrictions do not apply to suppliers with a continuous production cycle, so Taiwan’s TSMC and UMC factories will continue to operate as usual, Reuters reports.

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