Some Apple and Tesla Suppliers Suspend Production in China Due to Power Pinch


Sept. 27 (Reuters) – Several suppliers to Apple Inc (AAPL.O) and Tesla Inc (TSLA.O) have suspended production at some Chinese factories for several days to comply with stricter energy consumption policies , endangering supply chains in the peak season for electronic products.

However, two major Taiwanese chipmakers have said their facilities in China are operating normally.

The development comes as China’s coal supply and tougher emissions standards have triggered heavy industry contraction in several regions, slowing the country’s economic growth rate, analysts said. Read more

Apple supplier Unmicron Technology Corp (3037.TW) said Sunday evening that three of its Chinese subsidiaries shut down production from September 26 at noon until September 30 at midnight to “comply with the policy of limiting electricity from local governments “.

The Taiwanese circuit board maker said it did not expect a significant impact as more factories complement production.

Eson Precision Ind Co Ltd (5243.TW), a subsidiary of Taiwanese company Hon Hai Precision Industry Co Ltd (Foxconn) (2317.TW), said in a statement that it suspended production from Sunday to Friday at its facilities in the Chinese city of Kunshan.

People wearing face masks are pictured at an Apple store on the day the new Apple iPhone 13 series goes on sale, in Beijing, China on September 24, 2021. REUTERS / Carlos Garcia Rawlins

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Concraft Holding Co Ltd (4943.TW), a supplier of speaker components for Apple’s iPhone and which has manufacturing plants in Suzhou City, has announced that it will suspend production for five days until ‘to Thursday noon and would use stocks to meet demand.

Chipmakers United Microelectronics Corp (UMC) (2303.TW) and Taiwan Semiconductor Manufacturing Co Ltd (2330.TW) told Reuters there had been no impact on their factories in China.

“UMC’s Hejian plant in Suzhou is currently operating at full capacity of over 80,000 wafers per month,” said the Taiwanese company, whose customers include Qualcomm Inc (QCOM.O).

Two people familiar with the matter told Reuters that subcontractor Foxconn’s Kunshan facility had “very little” impact on production.

Foxconn had to “adjust” a small part of its capacity there, which includes manufacturing non-Apple laptops, one of the people said, adding that the company had not seen any impact on other big ones. production centers in China.

The second person said the company had to move some teams of workers from Kunshan in late September to early October.

Foxconn, one of Apple’s major suppliers, declined to comment.

Report by Kanishka Singh in Bengaluru and by Ben Blanchard and Yimou Lee in Taipei; Editing by Kim Coghill and Christopher Cushing

Our standards: Thomson Reuters Trust Principles.

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