The Chinese government is implementing new rules for using electrical energy, which will have an impact on Apple, Qualcomm, Tesla, and many other companies. How come?
The new electricity usage rules are applied in areas in China where the use of electricity for industry is considered too high. Namely limiting the use of electricity for industry in the area.
The big aim of this rule is to clear China's skies ahead of the Winter Olympics and also to increase its reserves of coal and other natural resources for domestic use.
The impact of the regulation is that a number of component suppliers for Apple and Tesla have started to stop their production on Sunday (26/9/2021). Some factories close their factories until next Friday, but there are also those that stop their factory operations until the end of September.
One of the companies affected is Eson Precision Engineering, which is one of Foxconn's main partners and a major supplier to Apple and Tesla.
According to a spokesman for Eson, they can still fill the production shortfall due to the plant's closure by boosting production over the weekend.
Then there's Unimicron Technology, which makes circuit boards, and Concraft Holding, which makes speakers for mobile devices. They plan to use their stock of components to maintain the supply of components to their clients.
Meanwhile iPhone makers such as Pegatron and Foxconn claim they have taken special steps to ensure production continues, namely by reducing the use of electricity.
Not only Apple and Tesla are affected. Companies that are partners with Intel, Qualcomm, and Nvidia have also been affected, and have to close their factory facilities in Jiangsu until the end of September.
The implementation of this new rule can be said to occur at the wrong time, namely when there is a global shortage of chips. Where many manufacturers are already struggling to meet the demand for chips from various companies.
