Large-scale power cuts and shutdowns in Kunshan, Jiangsu, affected many Taiwanese factories, and workers on the production line passed the National Day holiday ahead of schedule
Recently, in order to further improve the dual control system of energy consumption, the National Development and Reform Commission issued the "Plan for Improving the Dual Control System of Energy Consumption Intensity and Total Volume", which clarified the overall arrangement, working principles and tasks of the dual control system of energy consumption.
How is the "plan" implemented?
What is the scope of influence?
How long will it take?
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Due to the swift and violent issuance and implementation of the "Plan", a series of problems have enveloped all walks of life, including the electronic information industry. On the evening of September 26, an announcement signed by ASE Semiconductor (Kunshan) Co., Ltd. circulated on the Internet. The announcement pointed out that ASE Kunshan factory will suspend production due to power cuts from 8:00 on September 27 to 24:00 on September 30. During this period, the factory will have no output.
Subsequently, on September 27, a number of Taiwanese media, including Economic Daily and Business Times, reported that Kunshan, Suzhou and other places had no warning to require companies to curtail power and stop production until the 30th of this month. The electronic enthusiast reporter confirmed by consulting practitioners and inquiring Kunshan Forum/Kunshan Post Bar that there are indeed limited electricity operations in some areas of Kunshan City.
Some netizens left a message on the Kunshan Post Bar, saying that Kunshan will suspend electricity from the 26th to 29th and 90% of enterprises will stop production. The 90% figure has not yet been officially confirmed, but the Economic Daily reported in a report that in response to the national call for energy conservation and emission reduction, industrial enterprises and trading companies throughout Kunshan will operate from noon on September 26 to September 30. All work is required to be suspended, and government staff will supervise the implementation during the period.
The reporter also saw from Tieba and Kunshan forum posts that quite a few companies were affected, and a production line worker working in a Taiwanese company stated that their factory had already started the National Day holiday ahead of schedule.
At the same time, the reporter saw at the Kunshan Forum that not only did the workshops and factories have large-scale electricity rationing, but also the unit's electricity consumption has indicators. A certain unit in Kunshan required 60% less electricity from today to the end of the month than last month.
Source: Kunshan Forum
Kunshan is an important town in the electronics industry
Kunshan is an important town in the electronic information industry. The county-level city has formed a complete semiconductor industry chain integrating "design, manufacturing, packaging and testing, materials and supporting equipment". Based on this, Kunshan's electronic information industry has developed rapidly in recent years. , To become an important production base in the country.
Statistics show that as of 2018, more than 70 of Taiwan's top 100 manufacturing companies have settled in Kunshan, forming an industrial cluster advantage in electronic information and high-end equipment manufacturing. At present, Kunshan's high-tech industry output value accounts for 49.9% of the planned industrial output value, and the output value of emerging industries accounts for 51.3% of the planned industrial output value.
According to the "China Township Comprehensive Competitiveness Report 2020", only Qiandeng Town in Kunshan City has settled about 2500 domestic and foreign industrial enterprises, including 265 regulated enterprises and 176 high-tech enterprises, forming new materials, precision machinery, The four major industries of electronic information and e-commerce logistics.
Taiwanese factories are widely affected
According to statistics on the resumption of work and production at the beginning of 2020, Kunshan has 687 above-scale Taiwanese factories, so this wave of power cuts and shutdowns has a great impact on Taiwanese factories.
According to a report by the Economic Daily, due to the power curtailment policy, Taiwan-funded technology factories in Kunshan, Suzhou, etc. were affected, and index factories such as AUO, Taijun, and Jinxiang Power were all affected. According to the industry's rough estimate, although this wave of work stoppages is only five days, it will affect the revenue of Taiwan-funded technology factories at least NT$10 billion.
In its report, the Business Times pointed out that the electricity curtailment measures finally burned to Jiangsu where electronics industry supply chain manufacturers gathered on the 26th. Few smaller players survived. At present, only large assembly plants in Jiangsu have not received the curtailment. The notice, but the assembly plant has insufficient electricity and it is indispensable for the shipment of electronic products. The assembly plant is busy checking the inventory of each component, so as not to be unable to ship the goods if there is electricity.
A number of Taiwanese companies said in an interview that the company's factory in Kunshan received a notice of a power outage on the 25th. A person in charge of a factory pointed out that this year’s industrial peak season came earlier than in the past, leading to a sharp increase in electricity consumption in July/August during peak electricity consumption, which exceeded the red line in many places, but in comparison, industries like Kunshan are clustered. The land will be more serious, so the pressure will be greater to complete the indicators assigned above.
At present, many Taiwanese companies have expressed their views on the electricity curtailment policies in the Suzhou metropolitan area and Kunshan.
According to AU Optronics, the mainland China plant has cooperated with the local government’s curtailment policy, activated backup generators, and stopped non-essential power consumption, and adopted the most appropriate control and energy-saving equipment such as lighting and air-conditioning to cope with curtailment measures. Production and operation are not affected. Influence.
According to Bloomberg's report, Apple supplier Pegatron has begun to adopt an energy-saving model. In response to this news, Pegatron responded that it is currently operating normally. If there is a future limited power supply in the plant area, the backup power generation system and energy-saving mechanism will be activated immediately to ensure that the production capacity is not affected under the principle of safety.
Xingnenggao said that the Greater Suzhou area stopped supplying industrial production power from 12 noon on September 26 to 24:00 on September 30, and its Kunshan plant also cooperated with the suspension. At present, a certain amount of inventory has been established, and the inventory level is higher than usual. We will do our best to meet customer demand for shipments. Follow-up will also pay close attention to downstream customers' pull strength and the situation of peers.
Lead frame manufacturer Jie Lin stated that the Greater Suzhou area will stop supplying industrial production electricity from 6 pm on September 26 to 24:00 on September 30. The Suzhou plant also cooperated with the shutdown, which accounts for about 16-17 of the overall production capacity. %. After the power is restored in Suzhou, we will make every effort to adjust manpower output to reduce customer inconvenience, and continue to pay close attention to the chain effects caused by the policy.
On the whole, Xinxing, Changke*, Lianhong Technology, MSI, and Shenji have cooperated with the local government's electricity curtailment policy and temporarily suspended work until September 30. Jinxiangdian, Jialianyi, Xinxing, etc. will also coordinate with the policy for production capacity allocation. Power supply manufacturers Delta and Lite-On have not received notices of power curtailment and work stoppages. Qunguang Energy stated that the Wujiang plant is in normal production. The plant is a model factory for energy-saving and smart factories, and many energy-saving measures have been introduced.
In order to deal with the order supply problem, a Taiwanese factory stated that it will use three times the salary during the eleventh period to replenish production capacity to ensure that the orders that have been signed can be delivered smoothly. However, he also pointed out that the current electricity curtailment and production shutdown policies in various places including Kunshan are irregular, irregular, unplanned, and without notice, so subsequent order signings will have a relatively large delivery risk.
Affected by the power cut and production shutdown policy, Taiwan stocks opened higher on the 27th and pulled back. Electronic stocks are trending weak, and funds are mainly transferred to paper, plastics and rubber industries.
IPhone 13 supply chain warning
After the large-scale power cuts in the large urban areas of Kunshan and Suzhou, the industry began to pay attention to the supply of iPhone 13, and some parts suppliers are located in this area.
According to foreign media reports, Foxconn has won most of the foundry for the iPhone 13 series, including all iPhone 13 Pro Max orders, 68% of iPhone 13 orders and nearly 60% of iPhone 13 Pro orders. Part of the order is in the hands of Pegatron.
Although Foxconn's mainland base is in Zhengzhou and Pegatron's iPhone foundry is in Shanghai, many companies in the iPhone supply chain are located in Suzhou and Kunshan. For example, Luxshare Precision, which just joined Apple's foundry this year, according to reports, the company has won 40% of the iPhone 13 Pro foundry orders, and its factory is located in Kunshan, which will be affected by large-scale power restrictions; iPhone 13 main mechanical parts Supplier Yisheng Precision is also located in Kunshan. It has ceased production from September 26 and is expected to resume production on October 1. Printed circuit board suppliers Xinxing Electronics and Yisheng Precision are in similar conditions and will not be able to produce until the end of this month.
Taking into account that foundries generally stock up on a large scale, this wave of power cuts is not expected to cause supply problems for the iPhone 13 series of mobile phones. "No plan" status, then it is very likely that the iPhone 13 will be in short supply, which will affect Apple’s revenue.
People's Daily criticizes power cuts
At present, it is the traditional peak production season, but local governments have been forced by the pressure of energy-saving indicators to start large-scale power cuts and shutdowns, and even cut power cuts without notice. The implementation methods are rough and have a great negative impact on social production. . In response to such a situation, the People’s Daily posted a comment on Weibo, “What is the “one size fits all” approach that individual places are doing their best to optimize energy consumption indicators, shut down production and even affect residents’ electricity consumption? There is a reason for homework. Normally, if you don’t do anything, you will do more and more arduous surprises near the assessment; usually chant the slogan of "green development", but in actual work, you repeatedly chase short-term benefits, which exposes some places' understanding of the new development concept. The plan for a green and low-carbon transition is not active. I saw the red light early and had to wait for the line to slam on the brakes. Have you considered how passengers feel?"
