Today, the semiconductor sector fell sharply, which may be related to the sharp decline in Q1 integrated circuit capacity caused by the spread of the epidemic in many places across the country.
However, according to the financial Associated Press reporter, in order to protect the industry ecology, some Shanghai semiconductor enterprises have resumed work and production in an orderly manner. The production of several leading enterprises is still in normal operation, and the employees have carried out closed-loop management. However, under the current situation, not all enterprises have the ability to return to work immediately, and it will take time for the industry to fully recover
industry supply chain structure issues highlighted
The haze of “lack of core” has been enveloping the electronic market, and the imbalance of industry supply chain is not new. As China’s semiconductor “important town”, the epidemic has spread all over the country, which undoubtedly worsens the already tight semiconductor production capacity. According to China’s National Bureau of statistics, IC production fell by 4.2% in the first three months of this year, due to a sharp decline in chip manufacturers’ production in March.
China’s semiconductor quarterly output shrank for the first time since the beginning of 2019. It is reported that the main reasons are the weak demand for consumer electronics and the interruption of production in areas including Shanghai due to the blockade caused by covid-19 epidemic according to the statistics of China Semiconductor Association, the output value of Shanghai’s integrated circuit industry accounted for 23% of the country in 2020, of which the design industry accounted for as much as 25% of the country, while the manufacturing and packaging and testing accounted for 18% and 17% respectively.
The upstream is tight and the downstream mood is also poor. Elvis Hsu, general manager of cinno research semiconductor division, told reporters, “the spread of the epidemic and the continuous sealing and control have had a significant negative impact on downstream terminal markets such as PC / Nb, TV and smart phones.”
According to cinno research statistics, in February, the sales volume of smart phones in the Chinese market was about 23.48 million, down 20.5% year-on-year, 24.0% month on month, and both contracted year on month.
“the epidemic has also affected both production and consumption. First, the supply shortage of raw materials at the production end affects industrial output, and second, the supply shortage of products at the consumption end affects social life, which makes the semiconductor industry chain bound to need to be restructured to stabilize the chain and ensure supply.” elvis Hsu further said.
the shortage of logistics and material supply chain is the primary problem of semiconductor enterprises elvis Hsu told reporters that because the chip design company has no production and manufacturing business, it only has the problems of smooth logistics and prolonged test cycle. Wafer manufacturers have no problems in production due to the implementation of closed management in the whole region, but the supply of materials is limited and can only last for an average of two to three months. Due to the short cycle and low inventory level of packaging test, the problems of raw material supply and logistics are particularly obvious.
some enterprises still have obstacles to resume work
” Shanghai Wanye Enterprises Co.Ltd(600641) subsidiary kaishitong is the first batch of” white list “enterprises to resume work in Shanghai. It has received the notice of resumption of work and production, and is stepping up the formulation of resumption of work and production plan, preparing epidemic prevention manual and epidemic prevention materials, and starting to resume production after communicating with the park.” People from kaishitong company told reporters.
With the release of the “white list” for resumption of work and production, a large number of enterprises have resumed production in an orderly manner. According to the official news of the Ministry of industry and information technology, resources will be concentrated to give priority to ensuring the resumption of work and production of 666 key enterprises in key industries such as integrated circuit, automobile manufacturing, equipment manufacturing and biomedicine. There are 69 integrated circuit enterprises, including Semiconductor Manufacturing International Corporation(688981) ( Semiconductor Manufacturing International Corporation(688981) . SH), Huahong semiconductor (1347. HK), Advanced Micro-Fabrication Equipment Inc.China(688012) ( Advanced Micro-Fabrication Equipment Inc.China(688012) . SH) and other Chinese leading semiconductor enterprises.
On the other hand, some enterprises have been in closed-loop management, and the impact of the epidemic is relatively small. “At present, we have not been affected. The production and operation of Songjiang factory has not stopped, and the workers eat and live in the factory. The logistics has been tight for the past two weeks, and now it has gradually recovered,” Shanghai Sinyang Semiconductor Materials Co.Ltd(300236) company head told reporters.
According to public information, except for Shanghai Sinyang Semiconductor Materials Co.Ltd(300236) , Semiconductor Manufacturing International Corporation(688981) , Huahong semiconductor, Advanced Micro-Fabrication Equipment Inc.China(688012) etc. all implemented closed management during the epidemic period. Entering the “white list” may accelerate the logistics recovery of the above enterprises.
It is worth noting that at present, the difficulties faced by Shanghai enterprises are far more than whether they can be listed on the “white list” “only when the supply of all raw materials of semiconductor production line is sufficient, the inventory level is moderately increased, the manpower is fully allocated, the logistics and customs of bonded port area are fully unblocked, and the epidemic situation is strictly controlled can the production and manufacturing be carried out smoothly,” cinno research semiconductor division general manager Elvis Hsu told reporters.
In this case, not all enterprises have the ability to return to work. “As far as I know, many of our cooperative enterprises have not been able to restart. In fact, it is very difficult for enterprises to sign letters of commitment, etc.”
At the same time, the situation of small and medium-sized enterprises is more difficult, and they face many challenges if they want to resume work and production.
A person from the industrial chain told reporters that some people from small and medium-sized enterprises suggested that more flexible methods should be adopted for small and medium-sized enterprises to ensure the resumption of work. For example, according to the existing number of social security people and the unified percentage, each company can be assigned to a different number of electronic passes. Enterprises can only bind one ID card to each electronic pass, and set the conditions and restrictions of the bound person, such as nucleic acid green code for N consecutive times; The community with this electronic pass is unconditionally released, so that employees can also go to work, and the total number of people is also limited.
