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China’s power cuts shut down Apple and Tesla suppliers

Posted by on 2021/09/27. Filed under Breaking News,China,Headline News. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

Eason Precision, a unit of Foxconn, the world’s largest iPhone assembler, said on Sunday it had suspended production at its facilities in Kunshan, China, from 26 to October 1 in response to the city’s policy of cutting off industrial electricity, the Nikkei business Daily reported.

Eason Precision is a key supplier of mechanical parts to Apple and Tesla. In addition to Eisheng, xinxing Electronics, a maker of printed circuit boards, and Compro, a supplier of speaker parts that are also major suppliers to Apple, are also halting production. The former will stop production from noon until the end of the month; The latter suspended production for five days until noon on Thursday.

The two Soozhou-based companies said they would use their inventories to support demand and mobilise capacity from other factories to mitigate the impact.

The shutdown in several Chinese provinces could send another shockwave through the global technology and automotive supply chain, which is already suffering from unprecedented shortages of chips and parts and is also experiencing disruptions from the COVID variants in Vietnam and Malaysia, the Nikkei business Daily reported. In addition, the discontinuation of the latest iPhone model, which came out this month, puts it at risk of a supply chain disruption.

Power companies in northeast China said the power grid was in danger of collapse and it was unclear whether they would be able to end the blackouts before winter. The power cuts have further affected business operations, with several major suppliers to Apple and Tesla halting production at some of their Factories in China.

China’s current power rationing crisis broke out in three northeastern provinces. A power outage has hit many parts of northeast China, affecting local residents, the Beijing News reported. In some places the power was cut off several times a day and in others it was cut off for more than 12 hours. Many urban areas in Liaoning and Jilin provinces suffered power outages at around 4 PM on Wednesday and were not notified until 10 PM.

State Grid Jilin Power Supply Company and State Grid Tonghua Power Supply Company, the power companies of the three northeastern provinces, issued notices at around 10 PM on September 23 respectively: “In order to ensure the safe and stable operation of the power grid, jilin (Province) Power grid took power rationing measures at 16:37 on the same day as instructed by the Northeast Power Grid. Nine urban areas of the province implemented power rationing. Some customers are out of power, and the time to restore power will be notified by the Northeast Power Grid.” Both notifications have now been removed.

Local power supply companies said the situation was urgent because of tight supply and demand and that they might not be able to notify customers in advance, the Beijing News reported.

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