Local governments' restricting power supply in China has led to decreases in utilization of production capacities at LCD panel supply chain makers' factories mostly in southern and eastern China to about 60%, and consequently, output of panel components and LCD modules has dropped by about 30%, according to AVC Revo.
While global demand for TVs has decreased, global demand for TFT-LCD panels used in business-use notebooks and monitors, commercial and automotive displays, customized displays has been strong and is expected to remain until the end of 2021 at least, according to chairman Paul Peng for AU Optronics (AUO).
Many IDMs and pure-play foundries, including second-tier ones, are all poised to expand their fab capacities sparking concerns that the arrival of the additional capacities could result in a glut of processed wafers.
Supply chains are moving to cope with China's power reductions in one way or another, with the prospect the restrictions may become a long-term policy and will inevitably drive up production costs, according to industry sources.
Samsung Electronics has outlined plans to move its 3nm GAA process to volume production in the first half of 2022, which could allow the South Korea-based foundry to beat TSMC in the GAA process race, according to industry sources.
Notebook ODMs saw their shipments disappoint for China's just-ended National Day holiday, which may indicate a particularly weak fourth-quarter this year with the year-end Christmas shopping season likely to see lower sales momentum than the past years, according to industry sources.
Ennostar, a holding firm jointly established by LED epitaxial wafer and chip maker Epistar and vertically-integrated LED maker Lextar Electronics, will expand production capacity for miniLED backlighting by 20-30% in the fourth quarter of 2021 and further double the end-of-2021 capacity in 2022, according to company chairman Lee Biing-jye.
If there will be an Apple Car, who will assemble it? Sources at suppliers speculated that Apple might have had a grip on most key components up until now and that the speed Apple makes adjustments with suppliers seems faster than before.
The supply of leadframes for chip packaging has been tight, with the visibility of orders from international IDMs for automotive and industrial applications extended to 2023, according to industry sources.
South Korean companies from chaebols (large family-owned businesses) to network platform authorities to large Internet companies such as Kakao, Naver and Coupang, are starting to feel tense. Contributing factors include the upcoming South Korean presidential election that will be held in March 2022, as well as Samsung Group chairman Lee Jae-Yong's recent parole from prison.
Huawei's venture arm Hubble Technologies has made investments in a number of China-based IC companies, including its latest investment in Chongqing Wuqi Tech, which develops AIoT chips, according to industry sources in China.
Taiwan-based makers with factory operations in Kunshan of China's Jiangsu provinces were notified on October 5 by the local government about immediate power cuts, and have expressed concerns that such restrictions could repeat randomly in the future, according to industry sources.