Since the end of March this year, Shanghai, Suzhou and other major domestic electronics manufacturing towns have implemented strict prevention and control policies to prevent and control the epidemic, leading to difficulties in logistics and enterprise production.
In response to calls from various parties, Shanghai issued the "Shanghai Industrial Enterprises' Guidelines for the Prevention and Control of the Epidemic (First Edition)" on April 16, and included 666 enterprises in the first batch of "Key Enterprises List" to protect and promote the resumption of work and production of these enterprises. Subsequently, Suzhou also released a white list of key enterprises and key supporting enterprises in the industrial supply chain on April 18, involving 1,696 enterprises, requiring all parts of Suzhou to ensure the smooth flow of logistics for these enterprises.
Suzhou and Kunshan, which is administered by Suzhou, are the gathering place of domestic electronics industry chain enterprises, and also the gathering place of Taiwan-invested enterprises. Since April, the local factories of many Taiwanese companies, such as TSEC, NDT, Xinxing Electronics, AUO, MSI, Compal, Guanghua, Park Cheng, Blue Sky, Huafu, Anli, and Shanghua, have been temporarily shut down.
According to the statistics of Taiwan Financial Supervisory Commission, there are currently 851 listed companies in Taiwan with factories in Shanghai, Suzhou, Kunshan, etc. As of April 11, 161 listed companies in Taiwan have had work stoppages in their local factories and production lines, and the industries with the largest number of work stoppages are electronic components (41), electrical machinery (16), computers and peripherals (15), and other electronic industries (15).
The key reason for these companies to stop working is: the epidemic control makes the logistics blocked, the raw materials needed for factory production can not enter, finished products can not come out, many manufacturers can only rely on inventory struggling to hold up. As the epidemic control continues, when there is a serious shortage of inventory, they are naturally forced to stop work.
In this regard, Suzhou City epidemic joint prevention and control headquarters of enterprise prevention and control group 18, said that in order to do "to ensure production, stable development", by the local collation of the supply chain reported the key enterprises and key supporting enterprises, the formation of the first batch of key enterprises and major supporting enterprises list. Suzhou requires all places to confirm the list of enterprises, increase the coordination efforts, further services to protect the logistics of enterprises, to ensure the smooth flow of logistics within Suzhou.
According to the introduction, Suzhou's first batch of key enterprises list has 393. Taiwan factories gathered in Kunshan (under the escrow of Suzhou), Nanya Electronics, AU Optronics, Compal, Wistron, Jetion, Advantech, and Chengxin are in the list. Among them, Xinxing, Nandian, Taiwan Optoelectronics, Ting Ying, Jia Lian Yi and other major PCB manufacturers are also in the list.
In addition to the above-mentioned industry, PCB industry, such as carrier board factory Jing Shuo, HDI factory Huatong, server board factory Golden Image Electric, automotive board / industrial control board Jing Xing, hitting the parts factory Taiwan Table Branch, copper foil substrate factory Teng Hui are equipped with production capacity in Suzhou.
The industry pointed out that the morning of the 16th received a notice that Suzhou entered a semi-closed city state, and on the 18th received a notice to interpret this announcement, it seems to emphasize the increased coordination efforts to protect the logistics and transportation of enterprises as far as possible, so that the list of companies in the logistics can be smooth, but the past period of time since the announcement of the shutdown or into the closed management is still maintained, and further conditions to see the instructions updated on the 19th.
Huatong mentioned that Suzhou is a small SMT factory, in line with local government policies, if urgent orders will be adjusted to Huizhou production, the outlook for the second quarter, maintaining the year to year growth of the same view.
The legal person said, despite the consumer market noise, but Huatong to high-end products, orders have not seen significant adjustments, while taking into account the company's past flexible capacity scheduling and resilience, as well as the end of the second quarter will begin to have the second half of the production of new products, for Huatong second quarter operations to maintain a positive view.
Golden Image Electric said that in view of the tightening of the epidemic, prior to the Qingming holiday has been prepared, even during the holiday period without rest actively prepare materials, including raw materials for production, as well as plant staff food and housing and other related necessities, the current smooth operation of the plant, production has not been affected, more worried about the impact of logistics by the closure control, the current incoming and outgoing goods are okay, but the time is longer than in the past, continue to pay close attention to the development of the local epidemic situation We will continue to closely monitor the development of the local epidemic.
Jingxing 18 announcement pointed out that Suzhou subsidiary Essence Electronics will cooperate with local government regulations to take epidemic response measures to ensure the safety and health of employees, and maintain close contact with customers and suppliers to adjust production and shipping time, and continue to pay attention to the development of the epidemic situation, the actual degree of impact is still subject to the follow-up development of the epidemic policy.
Teng Hui mentioned that the Suzhou plant is normally open, production is normal, the main impact in logistics, because the road is closed, in and out of the goods time is not easy to predict, the upstream and downstream supply chain and customers in Kunshan, Wuxi, Nantong, Shanghai and other places part of the shutdown, also do not accept deliveries, the assessment of the short-term more or less some impact, the follow-up still depends on the development of the epidemic and the sealing control situation, the second quarter operation prudent view.
According to the reporter's understanding, although the Suzhou Municipal Government late to the end of last week to end the list of companies that can start, in fact, since last week, Suzhou City has been open to manufacturers can be dedicated lines, special vehicles, special drivers to cross-district transportation. The industry rumor has it that Compal arranged a total of 27 trucks last week to transport raw materials and components to the Kunshan plant and supply chain, and Delta also successfully sent a vehicle from Kunshan last week to carry the material conditions were once tight institutional parts across the region to the Wujiang plant.
Even though it seems that the government authorities seem to really have to ensure smooth logistics, but in fact in Suzhou, Kunshan, Wujiang and other places to set up factories in Taiwan's electronics supply chain, in the coordination of incoming materials, logistics, is still a lot of difficulties.
A supply chain revealed that last week it was difficult to apply to the government to the route to Shanghai airport to carry the semiconductor components piled up in the customs, the results because the driver confirmed the diagnosis, waiting for a long time to look forward to the semiconductor components, followed by the driver was taken away.
Moreover, prior application and approval must be obtained before transporting goods across the region, and there are restrictions on special routes, special vehicles and special drivers, but it is very dynamic when the production line will have how much raw materials and components must be replenished in real time. The supply chain can only hope that with the passage of time, more can be opened up as soon as possible.