Component Plants Shutdown Due to Power Cuts in China

The ongoing power shortage in China has affected multiple electronics supplier sites within the region. Which areas are affected most?

A combination of tougher emissions standards, coal supply shortages, and increased demand from manufacturers have sent coal prices sky-high in China. Due to this, China has had to halt production at multiple factory sites—including sites used to supply Apple and Tesla—to curb energy usage and ensure that residents in North China have enough energy to remain warm during nights that now approach freezing temperatures.

Where are the power cuts taking place?

Prominent manufacturing plants operating in China are experiencing production cuts and entire shutdowns due to ongoing energy cuts.

Tracker and timeline for affected regions:

Guangdong:

Guangdong Power Grid stated that it will implement the “on-two-stop-five” power plan from September 16 till 30th, and implement peak shifts on Sundays, Mondays, Tuesdays, Wednesdays, and Thursdays, and only reserve peak-shift days, the security load will remain below 15% of the total load, and the peak shift time will be 7:00-23:00.

Jiangsu:

Enterprises are generally required to start two and stop two, the tentative duration of power rationing will be 15 days till September 30th.

Taizhou Xinghua, Nantong, and other places issued notices that all industrial enterprises must suspend production, and the expected power outage period will expire at 24:00 on October 8th.

Jilin:

The Northeast Electric Power Management Bureau and the Jilin Provincial Energy Bureau will implement irregular and unannounced power outages. This situation will continue until March 2022.

Shandong:

Power shortage 9 hours per day from 15:00-24 lasted until September.

Zhejiang:

Zhejiang’s high-energy-consuming enterprises (printing and dyeing plants, chemical plants, and chemical fiber plants) would shut down from September 21 to 30th, several steel companies in Zhejiang have been ordered to reduce power.

Sichuan:

Suspend non-essential production, lighting, and office loads.

Ningxia:

High energy-consuming enterprises stop production for one month.

Shaanxi:

Enterprises have implemented measures such as reducing the operating load of their production lines and shutting down submerged arc furnaces to limit production to ensure a 50% production limit in September, Shaanxi’s power curtailment will be till the end of the year.

Chongqing:

Some factories cut off power production in early August, and the deadline is yet to be determined.

Henan:

Some processing enterprises have limited power for more than three weeks.

Liaoning:

Province has initiated orderly electricity usage measures, 3 rounds of level II (load gap 10-20%), the impact of electricity use is extended to residents and enterprises that do not implement orderly use of electricity.

Anhui:

There is a gap of about 2.5 million yuan in the balance of power supply and demand, the supply and demand situation is very tight.

It is decided to start the province’s orderly electricity use plan from September 22.

Shanghai:

From September 27th till October 3rd a widespread planned power outage will hit many areas.

Energy cuts in the Jiangsu and Guangdong provinces could have a significant impact on the electronic components industry. At least 121 Tier-1 sites could be affected by the power cuts, while at least 35 Sub-Tier sites could experience disruptions in output. Significant suppliers operating in this region include Samsung, ON Semiconductor, Lattice Semiconductor, Celestica, Walsin Technology, Micron, and more.

Significant electronics commodities produced in these regions include:

• Uncut Wire and Cable
• Capacitors
• Resistors
• Pb-Free Printed Circuit Board
• Inductors/Transformer
• Misc. Passive Comp
• Semiconductors
• Discretes
• Mechanical Hardware
• Cooling Components
• Electrical Connectors
• Printed Circuit Board
• Mech Fabrications
• FPGAs, PALs, PROMs
• Printed Circuit Assembly
• Pb-Free Printed Board Assembly
• Cable Assemblies
• OEM Assemblies
• Complex Assemblies
• Mech Sub-Assemblies and More

Electronic components and heavy industry firms are all affected by the power cuts. Industry insiders predict prices to rise for suppliers experiencing disruptions, and some suppliers may even put a halt to new orders.

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