Suzhou, an industrial city in eastern China, told some companies to stop operating during peak hours after damaged cables and generators interrupted power supply, exacerbating shortages caused by the biggest heat wave this year.
Companies were ordered to halt production between noon and 3pm and from 7pm to 10pm for three days starting Wednesday, the Suzhou government said on its Web site. It didn't give details of how the damage occurred.
Taiwan's BenQ Corp (明基電通) and Asustek Computer Inc (華碩電腦), which have factories in an industrial park in the city's west, said they haven't been affected. The rival China-Singapore Suzhou Industrial Park is exempt from the order, Pan Yunguan, a park official, said in a telephone interview.
China is experiencing its most severe power shortfalls since the 1980s, forcing plant closures in cities like Shanghai and Beijing. Average temperatures nationwide were forecast to reach as high as 37?C this week, according to the China Meteorological Administration, boosting demand for electricity to power air conditioners.
Demand for power in Suzhou has become "abnormally high," with temperatures reaching 36?C in recent days, the city government said.
Power supply fell by about 600,000kw on Wednesday because generators in Jiangsu province were down, the statement said. The factory shutdowns will free up 100,000kw of power that will be re-directed for residential use, it said.
Power is "guaranteed" to companies in the 70km2 park, said Pan, vice chairman of the administrative committee at the park.
At the Suzhou New District Hi-tech Industrial Park, Li Jiangtao, a human resources manager at BenQ, Taiwan's largest mobile phone maker, said production hasn't been affected.
"We have, of our own accord, implemented measures such as keeping the air conditioners at 26?C, telling employees to switch off computers when they leave and reducing the number of lights used," Li said. The company has its own generators for emergency use but hasn't had to use them, he said.
Asustek, the world's largest motherboard maker, is also running normally, said Bai Jiyi, a production manager. China's electricity output grew at its slowest rate in five months last month, rising 11.7 percent from a year earlier to 189.88 billion kilowatt-hours, the Beijing-based National Statistics Bureau said on its Web site this week. That's slower than growth of 14.3 percent in June.
Shares of contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) came under pressure yesterday after a report that Apple Inc is looking to shift some orders from the Taiwanese company to Intel Corp. TSMC shares fell NT$55, or 2.4 percent, to close at NT$2,235 on the local main board, Taiwan Stock Exchange data showed. Despite the losses, TSMC is expected to continue to benefit from sound fundamentals, as it maintains a lead over its peers in high-end process development, analysts said. “The selling was a knee-jerk reaction to an Intel-Apple report over the weekend,” Mega International Investment Services Corp (兆豐國際投顧) analyst Alex Huang
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is expected to remain Apple Inc’s primary chip manufacturing partner despite reports that Apple could shift some orders to Intel Corp, industry experts said yesterday. The comments came after The Wall Street Journal reported on Friday that Apple and Intel had reached a preliminary agreement following more than a year of negotiations for Intel to manufacture some chips for Apple devices. Taiwan Institute of Economic Research (台灣經濟研究院) economist Arisa Liu (劉佩真) said TSMC’s advanced packaging technologies, including integrated fan-out and chip-on-wafer-on-substrate, remain critical to the performance of Apple’s A-series and M-series chips. She said Intel and Samsung
POWER BUILDUP: Powered by Nvidia’s B200 Blackwell chips, the data center would support MediaTek’s computing power demand and business growth, the company said Smartphone chip designer MediaTek Inc (聯發科) yesterday launched a new artificial intelligence (AI) data center with a maximum capacity of 45 megawatts to meet its rising demand for computing power required to develop new advanced chips for AI applications. The company has completed the first-phase computing power buildup at the data center in Miaoli County’s Tongluo Township (銅鑼), providing 15 megawatts of capacity to support its research and development (R&D) capabilities, despite an industrywide shortage of key components, MediaTek said. Supply constraints have plagued a wide range of key components, including memory chips, solid-state drives, power supply units and central
TRANSITION: With the closure, the company would reorganize its Taiwanese unit to a sales and service-focused model, Bridgestone said Bridgestone Corp yesterday announced it would cease manufacturing operations at its tire plant in Hsinchu County’s Hukou Township (湖口), affecting more than 500 workers. Bridgestone Taiwan Co (台灣普利司通) said in a statement that the decision was based on the Tokyo-based tire maker’s adjustments to its global operational strategy and long-term market development considerations. The Taiwanese unit would be reorganized as part of the closure, effective yesterday, and all related production activities would be concluded, the statement said. Under the plan, Bridgestone would continue to deepen its presence in the Taiwanese market, while transitioning to a sales and service-focused business model, it added. The Hsinchu