ID :
186213
Fri, 06/03/2011 - 07:01
Auther :
Shortlink :
https://oananews.org//node/186213
The shortlink copeid
China's power shortage to affect global electronics supply chain
HONG KONG, June 3 (Yonhap) -- China's power shortage could disrupt the global electronics supply chain as many electronics makers rely on Chinese suppliers, international market research firm DisplaySearch said Friday.
State Grid Corporation of China, the largest electric power transmission and distribution company in the country, said last month that 26 provincial-level regions under its management would suffer from a shortfall of about 30 gigawatts this summer starting in June.
"Flat panel display and semiconductor makers will have to pay more attention to the capacity utilizations of downstream manufacturers, said David Hsieh, vice president of the greater China market at DisplaySearch.
"It might be the capacity of assemblers that limits the overall supply chain capacity."
Hsieh said that the prospect of power shortages is influencing manufacturing plants and supply chains for many consumer electronics products.
Electronics manufacturers, including system integrators and electronic manufacturing services firms; original equipment manufacturers; and original design manufacturing companies of all sizes are working to secure an adequate power supply for assembly operations, including calls for the government to give priority to high-tech industries, the researcher said.
"At the same time, manufacturers are worried about their suppliers maintaining production of components," he said.
Regions that include Beijing, Tianjin, Shanghai and the industrial provinces of Hebei, Jiangsu and Zhejiang are expected to be hit hardest by power shortages.
In China, the supply of electricity has not been able to keep pace with the robust growth of economic activities in industries, trade, commerce and offices.
One of the main factors for the cause of the power shortages is the soaring prices of coal, which fuels nearly 80 percent of power output in the world's second-largest electricity producer after the United States.
Watchers also attribute disruptions in production of hydroelectric power in the country. Central China along the Yangtze River, the biggest source of hydroelectric power, was severely hit by a drought that lasted about 200 days.
State Grid Corporation of China, the largest electric power transmission and distribution company in the country, said last month that 26 provincial-level regions under its management would suffer from a shortfall of about 30 gigawatts this summer starting in June.
"Flat panel display and semiconductor makers will have to pay more attention to the capacity utilizations of downstream manufacturers, said David Hsieh, vice president of the greater China market at DisplaySearch.
"It might be the capacity of assemblers that limits the overall supply chain capacity."
Hsieh said that the prospect of power shortages is influencing manufacturing plants and supply chains for many consumer electronics products.
Electronics manufacturers, including system integrators and electronic manufacturing services firms; original equipment manufacturers; and original design manufacturing companies of all sizes are working to secure an adequate power supply for assembly operations, including calls for the government to give priority to high-tech industries, the researcher said.
"At the same time, manufacturers are worried about their suppliers maintaining production of components," he said.
Regions that include Beijing, Tianjin, Shanghai and the industrial provinces of Hebei, Jiangsu and Zhejiang are expected to be hit hardest by power shortages.
In China, the supply of electricity has not been able to keep pace with the robust growth of economic activities in industries, trade, commerce and offices.
One of the main factors for the cause of the power shortages is the soaring prices of coal, which fuels nearly 80 percent of power output in the world's second-largest electricity producer after the United States.
Watchers also attribute disruptions in production of hydroelectric power in the country. Central China along the Yangtze River, the biggest source of hydroelectric power, was severely hit by a drought that lasted about 200 days.
