Thread by @imaoka334

PCB makers set to work overtime in China starting October 1
digitimes.com/news/a20210928…

PCB maker, particularly those in the supply chain of new iPhones, are set to step up overtime production starting October 1 to better fulfill orders from Apple following a five-day production halt at their plants in Suzhou and Kunshan, China due to power cuts by local governments

PCB suppliers and other manufacturers with plants in the two cities in Jiangsu province received a short notice from local governments on the morning of September 26 requiring them to halt production through the end of the month,

although they were also asked to reduce capacity utilization by 20% last week while power cuts were imposed weeks earlier on many textile, chemical and steel firms operating there, the sources said.

Most makers have to use their current inventory to support shipments to clients during the production suspension, and arrange overtime production shifts to cover part of deferred shipments starting October 1 if the power curbs end as scheduled, the sources said.

Actually, notebook and automotive PCB makers have little problem utilizing their inventory to satisfy customer demand as their inventory levels remain high due to shortages of chips and other components affecting their actual shipments over the past few months

But flexible PCB maker Flexium Interconnect will have to fully gear up for overtime production after normal power resumes on October 1,

given that its plants in Taiwan are dedicated to producing frontend blank boards, unable to grant capacity support for its Kunshan plant mainly engaged in backend module assembly

Flexium's existing inventory can hardly satisfy strong peak-season shipment pull-ins from Apple for iPhones during the production suspension period. Its revenues will be surely affected as a result, but the actual impact remains hard to estimate for the moment

PCB makers will closely watch the development of the power reduction policy and roll out proper countermeasures, the sources noted, but most of them believe the policy will be just a short-lived one.