Reporting by XinZhiyuan
Editor: Yuan Xie is sleepy
【New Zhiyuan Introduction】The impact of the new crown mutation strain on the electronic products in Jiangsu, Zhejiang and Shanghai has affected the upstream and downstream of the global industry chain.
Recently, a new wave of the epidemic brought by Aomi Kerong has led to a widespread disruption of manufacturing activities in the Yangtze River Delta region.
A number of key Apple suppliers shut down
For Apple, a number of key suppliers have suspended production in Shanghai and Kunshan.
On April 12, major assembler Pegatron said its two plants in Shanghai and Kunshan had shut down.
It is also Pegatron's only iPhone production base, accounting for about 20% to 30% of the world's total capacity.
Quanta, which is mainly responsible for macBook manufacturing, stopped production at its Shanghai Songjiang plant in early April.
As the world's largest notebook supplier, quanta has about 20% of its total production capacity in Shanghai.
In addition to Shanghai, Apple also has a large number of suppliers in Jiangsu, such as Foxconn, Wistron's Luxun Precision and so on. The two places add up to a total of dozens.
Among them, for the relatively small Scale Luxun Precision, its only assembly plant is in Kunshan, Jiangsu Province.
However, it is understood that the plant is still operating under closed-loop management and strict new crown precautions.
Major iPad maker Compal Electronics has also shut down its factory in Kunshan.
In addition to Apple, dozens of suppliers from other big factories also said they have suspended operations in and around Shanghai since April 2.
These include Two important printed circuit board manufacturers, Xinxing Electronics and South Asia Printed Circuit Boards, and BizLink, a major supplier to Dell and Tesla.
It is said that 161 enterprises in Shanghai and Kunshan in Taiwan have stopped production.
The duration may be longer than 17 days
Guo Mingxi, an analyst and well-known "Apple whistleblower" in the industry, said that the full recovery of production in Shanghai and Kunshan may wait until the end of April or early May.
For now, however, the direct impact of the Pegatron shutdown on Apple is still small, but in the long run, the continued disruption may damage the resilience of the supply chain and consumer confidence.
As the largest supplier of iPhones, Foxconn has not been greatly affected and can partially fill the recent supply gap. Assuming that Foxconn can maintain normal operations, Pegatron can gradually recover.
In this case, the impact of the closure on the supply of iPhones will be short-term and limited.
While it's hard to predict future closures, Apple has the best supply chain management capabilities and good relations with Chinese officials, so Guo thinks Apple can minimize the impact of the lockdown on supply.
However, the longer the lockdown lasts, the deeper the further negative impact on consumer confidence and may be detrimental to shipments of consumer electronics products, including Apple products, in the second half of 22 years.
The iPhone13 began production in India, and the Pro series is still in China
However, the uncertainty of the epidemic has not stopped Apple from expanding production.
On April 11, Reuters said Apple would produce the iPhone 13 in India and planned to start a production line for the iPad.
The factory in charge belongs to Foxconn and is located in the town of Sriperumbudur in the South Tamil Nadu state.
Some netizens also posted a comparison of the packaging box, and it can be clearly seen from the "country of origin" column that the top of the picture is made in India.
This is also the fourth iPhone produced by Apple in India after the 2017 iPhone SE.
During this period, Apple also produced the iPhone XR and iPhone 11 models through Foxconn and Wistron. However, the current Pro series is assembled by a foundry in China.
Kuo said that despite Apple's efforts and its partners' efforts to diversify its supply chain, China remains a major manufacturing hub. "China will remain Apple's most important production base for the foreseeable future."
In a statement, Apple said: "We are excited to start manufacturing the iPhone 13 in India for our local customers, which has a beautiful design, an advanced camera system that can take stunning photos and videos, and the amazing performance of the A15 bionic sensor."
In this way, this batch of iPhones should be mainly aimed at the Indian domestic market and is unlikely to be used for exports.
As the world's second largest smartphone market, India contributed about 4% of the market share to Apple last year, and Apple also became one of the fastest growing smartphone brands in India.
It has a huge impact on Shanghai's semiconductor industry
Shanghai focuses on many semiconductor companies, Lingang, Zhangjiang, Caohejing, Songjiang, Minhang Zizhu, etc. have large chip industry areas, and there are chip companies scattered in many other places.
The data shows that in 2019, the scale of Shanghai's integrated circuit industry reached 170.656 billion yuan, an increase of 17.65% year-on-year, accounting for about one-fifth of the country. According to the plan, by 2025, the sales scale of the whole industrial chain of Pudong integrated circuits will reach 400 billion yuan.
According to the news of professional self-media statistics such as Shende Information and No. 1 Xinwen Road, the production situation of the chip industry in Shanghai and its surroundings is not optimistic.
On April 4, Shanghai Ankua Packaging and Testing Company, one of the top ten semiconductor packaging and testing enterprises in China, was diagnosed by many people and stopped work in multiple departments.
It is reported that Anku is the enterprise with the largest number of employees in the Waigaoqiao Free Trade Zone in Shanghai, with about 5,400 employees and more than 3,000 employees in the factory area to perform production tasks.
Cui Shenglin, senior director of Ankua Packaging and Testing (Shanghai) Co., Ltd., said: Once we stop, the entire world's industrial chain will be more or less affected. It is hoped that under the condition of good epidemic control, the normal progress of production and operation can be guaranteed, and the industrial chain of Shanghai, China, and even the global integrated circuit industry can operate normally under the condition of serious core shortage.
In addition to Anran, Inventec's Shanghai plant was also previously suspended until April 1, and during the shutdown period, it will be supported by the Czech Republic and Mexican factories to ship. After April 1, whether the Shanghai factory of Inventec continued to stop work, follow-up did not see relevant news. Inventec Shanghai factory mainly produces server and smart device products.
The TSMC power plant area in Songjiang District has implemented a "two-point and one-line" closed-loop management of factories and dormitories. Usually, the company has about 2400 employees, and now the company plus home office staff maintain about 7 adults.
The three factories of USI Electronics Co., Ltd. in Songjiang District, Shanghai, purchased basic daily necessities such as sleeping bags, sleeping mats, toiletries, and food for the first time, and the factory area was also closed for management.
SMIC previously said that its Shanghai company has normal production and operation, implements closed management, and will maintain normal production.
SMIC's 12-inch fab in Shanghai is its state-of-the-art FinFET process fab, where both 14nm and improved 12nm processes are produced, with a design capacity of 35,000 wafers/month.
Huahong Semiconductor also said that the production will not be interrupted, so it recalled the necessary personnel to return to the company's accommodation, and adopted a closed management of only entering and leaving, and strived to ensure the operation of the line.
Silicon wafer manufacturer Shanghai Sunsheng Semiconductor also coordinated nearly 400 people to enter the company in the early morning of March 28 in Pudong Lingang Public Rental Housing Organization, and the factory began closed management to ensure continuous production of the factory.
A relevant person from Shengmei Shanghai, a leading producer in the semiconductor cleaning equipment industry, revealed that "the company has researched and developed and managed the Zhangjiang Park
Colleagues in the department took the initiative to arrange home work and implemented 24-hour closed production for the Chuansha factory. Cooperate with the government's epidemic prevention work and ensure the daily life of employees. As a result, the company's production activities have not been materially affected."
Hejing Shanghai Factory is located in Songjiang District, Shanghai, mainly engaged in the research and development, production and sales of semiconductor silicon epitaxial wafers, and provides other semiconductor silicon material processing services.
The company said that during the sealing period, employees can only enter and can not go out, eat and live in the factory area, the current Shanghai factory employees of about 3, 400 people, personnel arrangements and production are not affected, but shipments may be affected.
Nixi Semiconductor Technology (Shanghai) Co., Ltd., a power semiconductor company, urgently purchased more than 1,000 sleeping bags and bedding, and achieved 98% output with a 75% attendance rate.
Apple laptop backlit keyboard light guide supplier Maolin Optoelectronics on the 28th, the acting subsidiary Shanghai Xianglong Electronic Technology Co., Ltd. announced that in response to the impact of the new crown epidemic, from March 28 to March 31 in cooperation with local government policies to stop work. There is no follow-up news of the resumption of work.
In addition, mobile phone chip manufacturers Unigroup ZhanRui, CIS company Geke Micro, memory interface chip manufacturer Montage Technology, EDA core Huazhang, including a number of relevant responsible persons of semiconductor design companies in Shanghai, said that at present, in accordance with relevant policies to do a good job of epidemic prevention measures, the vast majority of employees work from home, while actively cooperating with the screening work.
Kunshan, Su Xichang, Japan and other places were also affected
In addition to the shanghai port, the industry in the Yangtze River Delta has also been hit by the outbreak of the new crown variant strain.
Kunshan manufacturers of chip and semiconductor materials:
Xinxing announced that Kunshan subsidiaries have temporarily suspended work, including Kunshan Dingxin, a subsidiary that mainly produces PCBs and HDI, and Xinxing Tongtai, a subsidiary that mainly produces flexible panels, accounting for about 20 to 25% of the production capacity.
Taiwan Optoelectronics announced that the Kunshan subsidiary will temporarily suspend work, and the estimated production capacity will account for about 30 to 40%.
Nanpower announced that the Kunshan plant will carry out closed-loop management, which will not affect the company's operations, and the production capacity is estimated to account for about 40%, mainly in the production of PCB and BT carrier boards.
Dynamic announced that it will cooperate with the government's policy to implement rotational rest and adjustment, and it is estimated that Kunshan's production capacity will account for about 60 to 65%.
Nanzidian said that the Kunshan plant was temporarily suspended from April 6 to April 8, and there is no follow-up news.
Upstream equipment factory Yatai Metal said that it will cooperate with the local government's new crown pneumonia epidemic prevention work to adjust production capacity and work from home.
Not only that, Su Xichang and other places, around the electronic products and automobile industry has a dense supplier layout, one of the supply problems, will have a great impact on the upstream and downstream production status of the entire industry.
For example, Kunshan has gathered a number of printed circuit board (PCB) companies to provide electronic components for engine, body, chassis control system and other functions for first-tier suppliers and car companies. These companies have all declared a shutdown.
And as soon as these enterprises stop working, the downstream car manufacturers who need their products, no matter how big or small, also have to stop working.
Tesla has issued a notice to workers and suppliers that it will not resume production on April 4 as expected, according to an internal notice released on April 3.
According to people familiar with the matter, Tesla originally planned to resume production on Monday, but the internal notice said that the resumption plan has been canceled, although the company did not elaborate on the reasons and did not disclose when it expects to resume production.
The German Bosch Group has already suspended production at its factories in Shanghai and Changchun, Jilin Province, while "closed-loop operations" of one factory in Shanghai and the other two in neighboring Taicang, keeping workers inside the factory and not allowing them to go out.
The closure of Jiangsu, Zhejiang and Shanghai has now affected Japan.
Mazda announced on April 12 that its Hiroshima headquarters plant and Yamaguchi Prefectural Defense Plant will stop production on the 14th and 15th. The reason is that Shanghai and other cities have implemented lockdowns due to the epidemic, and affected by this, the factories of Mazda's cooperative enterprises have stopped production, and some parts cannot be purchased.
Due to the shortage of semiconductors, the Mexican plant is also expected to shut down for two days in April.
In early April, the company suspended production at two factories in Japan for two days for the same reason.
Resources:
https://www.reuters.com/world/china/taiwan-iphone-maker-pegatron-suspends-operations-two-china-plants-2022-04-12/
https://asia.nikkei.com/Spotlight/Supply-Chain/Shanghai-Kunshan-lockdowns-hit-iPhone-Mac-and-iPad-makers
https://www.scmp.com/tech/big-tech/article/3174008/apple-supply-chain-china-hit-lockdowns-key-partner-suspends
https://www.reuters.com/technology/apple-starts-manufacturing-iphone-13-india-2022-04-11/
https://www.reuters.com/world/china/taiwan-iphone-maker-pegatron-suspends-operations-two-china-plants-2022-04-12/
https://www.singtao.ca/5699199/2022-04-11/post-%e8%bb%8a%e4%bc%81%e5%81%9c%e5%bb%a0%e2%80%82%e4%be%9b%e6%87%89%e9%8f%88%e8%bf%91%e7%99%b1%e7%98%93-%e7%89%b9%e6%96%af%e6%8b%89%e5%81%9c%e5%b7%a516%e6%97%a5/