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Wafer foundry giant Suzhou factory has been shut down due to the epidemic, and the design company has issued a supply warning. Analysts fear to exacerbate the shortage of chips

Views:315Time:2022-03-14
Source: financial Associated Press

    On February 14, liandian issued a statement on its official website that its 8-inch wafer factory and ship chip manufacturing company in Suzhou were suspended gradually in order to cooperate with the competent authority for full inspection due to an employee suspected of being infected with Xinguan. After the inspection, it will fully resume work with the approval of the competent authority. The epidemic Black Swan once again invaded the fragile chip supply chain. After the shutdown of liandian Suzhou factory, downstream IC design customers announced their business risks. Industry analysts told the associated press that if the resumption time of the factory is extended to more than a week, it will exacerbate the current chip shortage.

    A person in the wafer manufacturing industry told reporters that wafer factories generally have early plans and measures for the epidemic, including staggering shifts for employees living in a centralized place, maintaining dining distance, home office, etc. if the epidemic does not spread further, it is expected to have a limited impact on their own production and operation.
 
  Liandian also stressed in its official statement that the monthly output value of Suzhou and warships accounted for only about 5% of the overall consolidated revenue. The event had no significant impact on the company‘s financial business and maintained the performance outlook for the first quarter.


    However, for chip design companies that have been short of capacity for a long time, some shocks in the upstream OEM will affect their strained nerves. Cinno research, a third-party Market Research Organization, told reporters that under the current tight supply of 8-inch chips, if the factory needs more than a week to fully resume work, it will exacerbate the shortage of chips.

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