Some of the most important technology companies in the world, such as Manzana and Tesla, they look at their supply chain with concern. Chinese companies that make components for their products have paused production for a few days. This is due to the restrictions that China imposed on energy use due to the shortage of coal.
According to ., Unimicron Technology has stopped work at three of its subsidiaries in China from last Sunday until midnight on Thursday, September 30. Concraft, for his part, will keep his work on hiatus until Thursday noon; while Eson Precision will do the same until Friday.
In addition to the lack of coal, emissions regulations play their part in this story. According to PC Mag, China has pledged to reduce its energy intensity by 3% in 2021. And the pressure is mounting as only 10 of the country’s 30 continental regions have met their targets for the first half of this year. Therefore, it is expected that there will be even more restrictions on energy use in the coming months.
Restrictions on energy use in China force several companies to halt their production
Photo by Michael Dziedzic on Unsplash
The companies affected by the pause in their activities assure that the restrictions on the use of energy in China will not have an immediate impact on the supply of components. In Unimicron’s case, it will offset printed circuit board production with increased activity at its other plants. Concraft, for its part, will use the available stock to meet the demand for elements used in the iPhone speaker.
The . report indicates that Foxconn had to “adjust a small part of its capacity” at the Kunshan plant, although this would not directly affect Apple, one of its main customers. This is because the factory produces laptops that correspond to other brands.
Nonetheless, other companies have not yet been affected by restrictions on energy use in China. Such is the case of TSMC and United Microelectronics, which for now continue to operate normally in the Asian giant.
With the global chip shortage hitting hard, the least thing the tech industry needs is adding extra trouble to the supply chain. If, as PC Mag says, China’s measures tighten for at least three months, it would be impossible to rule out more significant delays in the production and delivery of components.