News Analysis
The high temperatures and drought across southern China in August prompted many places in Sichuan Province to impose power cuts on industries. The disruption could affect semiconductor production in Chengdu city and directly impact Taiwanese companies and the supply chain.
As a semiconductor manufacturing powerhouse, Sichuan’s provincial capital Chengdu has attracted many international and Chinese semiconductor companies, including testing companies such as SK Hynix; chip design companies such as NXP Semiconductors, Unisoc, and Vimicro; and other companies like China Resources Microelectronics, CSEC, AOS, Tsinghua Unigroup’s DRAM, and Xinxin Quantum.
Liu Pei-chen, a semiconductor industry expert and director of the Taiwan Industry Economics Services, told The Epoch Times on Aug. 28 that although the impact of the power restriction on the semiconductor industry in Sichuan is limited at this stage, it’s noteworthy and people should pay attention to the situation….