Electricity failures threaten to disrupt foreign businesses operating in China

"In China, new investors usually get preferential treatment," said Mobius, who is Templeton's managing director. "We heard from a few companies that they were guaranteed by the local government to have adequate power supplies on their new investments."

Taiwan Semiconductor Manufacturing Co (台積電), the world's biggest supplier of made-to-order computer chips, is due to begin production at its first factory in Shanghai this year.

Tseng Fan-chen (曾繁城), the deputy chief executive, said he's confident of having enough power.

"We have a good relationship with the Shanghai government," he said.

UTStarcom China, whose parent is based in Alameda, California, and Nan Ya Plastics Corp (南亞塑膠) are installing their own power generators in their manufacturing plants.

Nan Ya Plastics, Taiwan's biggest plastics maker, set aside US$114 million to expand in China and is installing generators at factories making polyester fibers, textiles and plastics.

"Almost all our plants are self-sufficient," said Wu Chia-chau (吳嘉昭), Nan Ya's executive vice president in Taipei.