The Global Chip Supply Has Been Hit Again

Malaysia and Vietnam play a key role in the production, packaging and testing of electronic parts, but these two countries are facing the most severe situation since the outbreak of the epidemic.

 

This situation may bring further impact to the global science and technology supply chain, especially semiconductor related electronic products.

 

The first is Samsung. The outbreaks in Malaysia and Vietnam have brought a great crisis to Samsung’s production. Samsung recently had to cut the output of a factory in Ho Chi Min h City. Because after the outbreak of the epidemic, the Vietnamese government asked to find shelter for thousands of workers in the factory.

 

Malaysia has more than 50 international chip suppliers. It is also the location of many semiconductor packaging and testing. However, Malaysia has implemented the fourth comprehensive blockade due to the recent continuous daily reports of a considerable number of infection cases.

 

At the same time, Vietnam, one of the world’s largest exporters of electronic products, recorded a new high in the daily increment of new crown infection cases last weekend, most of which occurred in Ho Chi Min he City, the country’s largest city.

 

Southeast Asia is also an important hub in the testing and packaging process of technology companies.

 

According to the financial times, Gokul Hariharan, Asia TMT research director of JP Morgan Chase, said that about 15% to 20% of the world’s passive components are manufactured in Southeast Asia. Passive components include resistors and capacitors used in smart phones and other products. Although the situation has not deteriorated to the point of astonishment, it is enough to attract our attention.

 

Bernstein analyst mark Li said that the blockade restrictions of the epidemic are worrying because the labor-intensive processing and manufacturing industry is very high. Similarly, factories in Thailand and the Philippines, which provide processing services, are also suffering from large-scale outbreaks and strict control restrictions.

 

Affected by the epidemic, kaimei electronics, the Taiwan parent company of resistor supplier ralec, said that the company expected the production capacity to decline by 30% in July.

 

Forrest Chen, an analyst at Taiwan’s Electronics Research Institute trend force, said that even if some parts of the semiconductor industry can be highly automated, shipments may be delayed for weeks due to the epidemic blockade.

 


Post time: Aug-11-2021