Home News China’s power curtailment measures bring new threats to the supply chain of chips and other products-Wall Street Journal

China’s power curtailment measures bring new threats to the supply chain of chips and other products-Wall Street Journal

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As the Chinese government has taken actions to curb energy consumption and reduce carbon emissions, coupled with the soaring coal price, power cuts in many manufacturing centers in China, this situation may further disrupt the already tight global supply chain of semiconductors and other important commodities.

According to company announcements and interviews with company executives by The Wall Street Journal, in the past week in China’s Guangdong and Jiangsu provinces, local officials have forced factories to limit production or temporarily suspend operations to reduce energy consumption.

Factories in other regions are also restricting production because coal prices have risen too high. Since last year, this problem has become more serious due to China’s ban on coal imports from Australia. Earlier, the Australian government called for an independent global investigation of the origin of the new crown, which triggered a diplomatic dispute between China and Australia. Subsequently, China decided to ban the import of Australian coal.

Kunshan City, Jiangsu Province, near Shanghai, is one of the areas most affected by power restrictions. More than 10 Taiwanese semiconductor-related companies submitted an announcement to the Taiwan Stock Exchange this week, stating that they will temporarily close their production facilities in Kunshan until September 9. The end of the month.

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