Component suppliers with manufacturing operations in Kunshan and Suzhou have expressed concerns about the impact of government-led power cuts on their local plants in China, and are unsure whether electricity supply can be fully restored by October 4.
The suppliers, required to suspend production September 26-30, are prepared to restart production on October 4, when their employees return from a long National Day holiday originally to end on October 7, as they were asked to advance their holiday for three days, the sources said.
If power restrictions remain in place in October and components makers fail to resume production as scheduled on October 4, the entire electronics supply chain might be crippled as their inventories are running out, the sources, stressing that the segments of notebook, handset, gaming machines and other devices will all be impacted as a result.
Makers lamented that they have little knowledge about possible development of China's current power consumption control policy, as all the government agencies involved have given no clear answers when asked for clarifications by local associations of Taiwanese manufacturers in China.
At the moment, only EMS plants can sustain normal assembly operations that use 220-volt power systems, the same as that for household applications that are not subject to power cuts, the sources said.
Most mechanical component makers, utilizing 380-volt systems to power their forging, casting, pressing and CNC cutting operations, will have no other choice but to continue halting production if power restrictions linger, the sources added.
Article translated by Willis Ke
