IC back-end material suppliers say the impact of short-term power cuts in Sichuan is "controllable"

According to DIGITIMES, on August 16, industry insiders said that IC back-end material suppliers expect the impact of six days of power cuts in China's Sichuan Province to be "manageable" on their plant operations.

Under the restrictions, industrial power users in 19 cities in Sichuan Province have been ordered to stop production between August 15 and 20 to ensure normal electricity consumption for residents and to secure the power grid during the worst heat wave in the region in 60 years.

Manufacturers of lead frames and other packaging materials in Taiwan, which have local manufacturing operations, pointed out that the impact on their production would be controllable because they were informed of power restrictions in advance, the report said. They stressed that what they are most worried about is a sudden power outage, as production and transportation may be unexpectedly disrupted.

In addition to short-term power cuts in Sichuan, packaging material suppliers also face low visibility of back-end material orders for processing mature consumer chip solutions. But according to supply chain sources, they have secured material orders for automotive MCU and industrial control chips for the next two quarters.