Kunshan extends closure and control, legal person: PCB factory may increase transportation costs and delay shipments

The epidemic situation in China is severe. Kunshan, a major Taiwanese business town near Shanghai, extended the closure and control for 4 days to April 12, and required enterprises to be fully closed for management. The legal person believes that printed circuit board manufacturers may face increased transportation costs, some shipment delays, and foundries are also affected by logistics, but the overall impact on the production side of Taiwanese factories has little effect.

Kunshan upgraded its epidemic prevention measures on the evening of April 1, announcing multiple rounds of nucleic acid testing across the city, requiring companies to take turns to reduce production, work from home, and control external traffic; on the evening of the 5th, it announced that it would further upgrade epidemic prevention and control measures from the 6th to the 8th. Businesses must be in full lockdown, followed by an extension of four days to April 12.

Kunshan is an important production center for components such as printed circuit boards (PCB), electronic foundries, and panels. Many Taiwanese companies have settled in the area. The outside world is worried that the closure and control may affect the shipment of 3C products, and even impact the global electronics supply chain.

According to the legal person analysis, in addition to the production impact of the PCB manufacturers located in Kunshan, due to the controlled logistics, the transportation costs will be slightly increased and some shipments will be delayed. Influence.

According to the legal person’s estimation, Xinxing’s subsidiary Kunshan Dingxin, which mainly produces PCB and HDI in Kunshan, and Xinxing Tongtai, a subsidiary that mainly produces flexible boards, account for about 20% to 25% of the production capacity; Taiguang Kunshan’s production capacity accounts for about 20% to 25%. 30% to 40%; Nandian Kunshan’s production capacity accounts for about 40%, mainly producing PCB and BT carrier boards.

The legal person pointed out that the production lines of electronic assembly plants Pegatron, Wistron and Compal in Kunshan are operating normally, but the logistics are affected. Overall, the Kunshan lockdown has little impact on the production side of Taiwanese factories, but it is still necessary to pay attention to the negative impact of the lockdown on logistics and demand.

The copper foil substrate and environmentally friendly substrate factory Taiguang announced today that its subsidiary Taiguang Electronic Materials (Kunshan) Co., Ltd. cooperated with the local government to prevent the COVID-19 (coronavirus disease 2019) epidemic, and temporarily extended the suspension until April 12. Normal operations resumed after notification by the local government.

Guanghua-KY, a car interior parts factory, pointed out that its subsidiary Xiangyang Guangjia has flexibly adjusted its production plan in response to the impact of stricter epidemic control and logistics blockades in Shanghai, Wuxi, and Kunshan for its major customers. At present, sufficient raw material inventory has been prepared to meet the production needs of customers after the resumption of work.

The board factory MSI announced on the 8th that the subsidiary Weimob Electronics (Kunshan) cooperated with the local government to implement closed management requirements for the epidemic. It will suspend work from the 8th, and the exact resumption time will be notified by the government; it will keep close contact with customers and suppliers to adjust Production and shipping time, and continue to evaluate the impact of the local epidemic on financial business.

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