[The Epoch Times, March 28, 2022](The Epoch Times reporter Liu Yi comprehensive report) Shanghai will be closed in batches on March 27. All enterprises will implement closed production or home office, semiconductor, electronic foundry, electric vehicles, etc. The industry has been impacted, and iPhone and Tesla shipments are facing challenges.
The number of people infected with the CCP virus (new crown virus) in Shanghai has continued to skyrocket recently. On the 27th, the official announcement on the day before the official announcement that 45 new local confirmed cases of new coronary pneumonia and 2,631 local asymptomatic infections were added in Shanghai. This is the second consecutive day that Shanghai has more than 2,000 positive cases. Because the CCP has consistently concealed the epidemic, the official figures may have shrunk significantly.
On the evening of the 27th, Shanghai officials officially announced that starting from 5:00 on March 28, Shanghai will implement the city closure in batches with the Huangpu River as the boundary. The first batch will be Pudong, Punan and adjacent areas (including the entire Pudong New Area). , Fengxian District, Jinshan District, Chongming District, Pujin Street and Pujiang Town in Minhang District, Xinbang Town, Shihudang Town, Maogang Town, Yexie Town in Songjiang District) first “implemented closure and control”, Nucleic acid screening will be carried out, and the closure will be lifted at 5:00 on April 1. At the same time, the key areas in Puxi continued to implement closure and control management.
During the closure and control period, the community and residential buildings are under closed management, only entering and not leaving, and all personnel stay at home. At the same time, all public transportation, including subways, ferries, taxis, etc., will be suspended, and all enterprises will implement closed production or work from home.
Taiwan’s “Economic Daily” quoted the analysis of industry insiders on the 28th, saying that this move will impact the flow of people and goods, and “basically stop production” for production-oriented enterprises, affecting industries such as semiconductors, electronic foundries, and electric vehicles. Tesla faces shipping challenges.
Shanghai is an important center for electronic foundry, chip foundry, packaging and testing, and electric vehicle production. Pegatron, Quanta, TSMC, SMIC, ASE, and Tesla all have local factories, plus it is a major import and export port , the status is important.
The Zhangjiang Hi-Tech Park located in Shanghai’s Pudong New Area is known as “Shanghai Silicon Valley”. It is the high-tech center of Shanghai, and many wafer-related companies are located here. This time, the Zhangjiang Hi-Tech Park has extended its strict blockade of residential areas.
ASE, the leader in semiconductor packaging and testing, is mainly based in Zhangjiang Hi-Tech Park; electronic foundry Quanta has an export processing zone in Songjiang, Shanghai, producing notebook, cloud and automotive products; Pegatron’s Shanghai Pegatron is an important base for assembling iPhones, and is also within the scope of this control.
Tesla has a “gigafactory” in Shanghai, which is Tesla’s most important overseas production base, and this Shanghai big control will also be affected.
Hejing, a semiconductor silicon wafer factory, said that the staffing and production of the Shanghai plant will not be affected, but shipments may be affected.
TSMC said on the evening of the 27th that production is not currently affected. TSMC’s Songjiang plant mainly produces 8-inch wafers.
SMIC Shanghai has 8-inch and 12-inch wafer factories, and its most advanced manufacturing processes are concentrated locally, with a monthly production capacity of about 35,000 wafers. SMIC did not respond to inquiries from The Economic Daily.
Kunshan City, Jiangsu Province, which is adjacent to Shanghai, also has well-known manufacturers such as panel maker AUO and foundry Wistron, and most of them export via Shanghai.
A Taiwanese businessman in the manufacturing industry told the Economic Daily that many electronics factories pick up goods from Kunshan and go to Shanghai port for transshipment for export. Now that Shanghai has “only entry but no entry” restrictions on people and vehicles, enterprises may press the pause button for cargo transportation. Most of the goods originally intended to be exported from Shanghai Port will have to wait for the epidemic to end before the logistics can flow smoothly.
Some Taiwanese businessmen believe that if Shanghai continues to be closed and controlled, the Kunshan factory may face the dilemma of running out of stock, and logistics will be blocked, which will have an impact on operations.
There is growing concern that China’s semiconductor manufacturing and packaging industries could be severely affected if Shanghai eventually decides to completely block the Zhangjiang Hi-Tech Park, performance sources said.
In the face of the closure of Shanghai, Wu Fan, a member of the expert group of the Shanghai Epidemic Prevention and Control Leading Group and the deputy dean of the Shanghai Medical College of Fudan University, said on the 26th that if the city stops, there will be many more people floating at sea in the East China Sea. Freighter, will affect the economy of the entire continent and the global economy.
Responsible editor: Li Muen#