On February 14, Sino Wealth Electronic Ltd(300327) (300327) disclosed the announcement on the impact of the supplier epidemic on production and operation, saying that the production activities of suppliers and ship chips and Jinglong technology in Suzhou Industrial Park were suspended, which would have an impact on the company’s product production, “if the ship and ship are unable to resume work due to the epidemic, it will have a significant impact on the company’s production and operation”.
At 1:53 a.m. on February 14, Suzhou issued the “epidemic prevention and control Notice No. 7 of 2022”, which said that on the evening of February 13, four of the patients in the fever clinic and the “willing to do all the tests” in Suzhou, Jiangsu showed positive results in the preliminary screening and review of nucleic acid tests. Then at 2:19 a.m., the joint prevention and control headquarters of covid-19 pneumonia in Suzhou Industrial Park issued the announcement of Suzhou Industrial Park on regional nucleic acid detection.
As of 11:00 on February 14, 7 confirmed cases of covid-19 pneumonia and 1 asymptomatic infection were found in the “February 13” epidemic in Suzhou. The official activity track of relevant personnel shows that “confirmed case 1” is the staff of Jinglong science and technology in the industrial park. “Confirmed case 4” is also the staff of Jinglong science and technology in the industrial park. “Confirmed case 5” is the staff of Industrial Park and ship science and technology, and is the husband of case 1.
According to the list of China’s top ten semiconductor manufacturing enterprises in 2017 released by China Semiconductor Association, Hejian chip ranks fourth among wafer foundry enterprises. According to the local official news, in the development process of nearly 20 years, relying on the existing OEM production line, Hejian chip has developed the mainstream logic, mixed signal, embedded nonvolatile memory, high voltage and image sensor technology from 0.5 micron to 110 nm, and the enterprise production line has maintained full load operation all year round. The Suzhou Industrial Park where Hejian chip is located is an important integrated circuit industry base in the Yangtze River Delta. Six of the world’s top ten sealing and testing enterprises have settled in the park, and nine enterprises are among the top 30 in China’s sealing and testing industry. Their industrial position is very prominent, and their revenue accounts for 11.2% of the country.
According to the announcement of Lianhua Electronics Co., Ltd., the parent company of Hejian, “an employee at Suzhou 8-inch wafer factory and shipyard chip manufacturing company is suspected of being infected with the disease. At present, it cooperates with the local competent authority to carry out full inspection, so the production activities are gradually suspended. After the inspection, it cooperates with the competent authority to approve and return to work.” The production of Hejian chips was suspended, and the impact on the downstream began to appear.
Sino Wealth Electronic Ltd(300327) disclosed the announcement on the impact of the supplier epidemic on production and operation on February 14, saying that the production activities of Hejian and Jinglong will be suspended, which will have an impact on the company’s product production, and the product supply may be delayed for a short time due to the delayed resumption of work by the supplier, poor logistics and other factors. Among them, Hejian is one of the important suppliers of the company’s wafer foundry, while Jinglong (packaging and testing foundry) accounts for a small proportion of the company’s business volume.
Sino Wealth Electronic Ltd(300327) said that the impact on the company’s production and operation is mainly related to the resumption time of Hejian. If Hejian is unable to resume work due to the epidemic, it will have a significant impact on the company’s production and operation. The company will adjust its production and operation strategy according to the epidemic and market changes.
