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Power supply is tight, and many important suppliers of Apple and Tesla stop production in China.

Published :9/27/2021 10:22:02 AM

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Recently, due to the continuous shortage of power supply, many provinces, cities and regions have adopted power curtailment measures, which will affect the production of enterprises. Several key suppliers of Apple and Tesla have announced the suspension of production in China. During the peak season of electronic products such as the new iPhone, the stability of the supply chain will be at risk.

According to the Nikkei Asian Review, Apple and Tesla’s main mechanical parts supplier Yisheng Precision Industry said on Sunday that the company’s factory in Kunshan, Jiangsu suspended production from Sunday to Friday in response to the The city’s policy to stop the supply of industrial electricity. Yisheng pointed out in the announcement that during the shutdown period, it will temporarily maintain operations with inventory, and it is expected to arrange production during holidays or even holidays to meet customer needs.

Apple's printed circuit board supplier Xinxing Electronics said that the company's factories in Suzhou and Kunshan also need to stop production from noon on Sunday to the end of this month, and will mobilize the production capacity of other manufacturing bases to reduce the impact.

It is reported that Apple's acoustic component supplier, Kang Fu Holdings, has a plant in Suzhou, and also announced that it will stop work from 5 to noon on Thursday, and will use inventory to meet customer needs.

The report pointed out that Pegatron, the main iPhone assembler with large production bases in Kunshan and Suzhou, said on Sunday evening that the factory is currently operating as usual, but the generator is ready for further notice from the city government. In addition, the manufacturing plants of Foxconn, another Apple assembler, in Longhua, Guanlan, Taiyuan and Zhengzhou have not been affected by power supply restrictions.

According to informed sources, several major chip packaging and testing service providers such as Intel, Nvidia, and Qualcomm have also received notices requesting factory shutdowns in Jiangsu Province for a few days, and chip supply in the electronics industry will be further affected.

NXP, Infineon and ASE's semiconductor packaging materials supplier Changhua Technology also announced that the factory will be suspended from the evening of September 26 to the end of the month.