IC back-end material suppliers expect that the impact of the six-day power curtailment measures in Sichuan Province, China, on their factory operations is "controllable".
Under the restrictions, industrial electricity users in 19 cities in Sichuan province have been ordered to suspend production from Aug. 15 to 20 to ensure normal residential electricity consumption and ensure grid security amid the region's worst heatwave in 60 years .
Taiwanese leadframe and other packaging material makers with local manufacturing operations noted that the impact on their production would be manageable because they were informed in advance of the power restrictions, the report said. They stressed that their biggest concern was a sudden power outage, as production and transportation could be disrupted unexpectedly.
In addition to the short-term electricity supply in Sichuan, packaging material suppliers are also facing low visibility of back-end material orders for processing mature consumer chip solutions. But they have secured material orders for automotive MCUs and industrial control chips for the next two quarters, according to supply chain sources.
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