The semiconductor supply chain in the shadow of the epidemic

Because of the epidemic, MCU manufacturers such as ST and Renesas have issued supply warnings.

On March 17, Malaysia announced on the 17th that the city will be closed nationwide for 14 days from March 18 to March 31. According to the announcement, in addition to necessary livelihood, transportation and public facilities, domestic enterprises and factories are required to suspend work for two weeks. Malaysia is an important place for the manufacture of resistance products for Japanese and Taiwanese companies, especially Taiwanese resistance manufacturers. A large proportion of the resistance production capacity of Huaxin Technology and Wangquan (under Kilixin) is in Malaysia. In addition to resistance products, Japan's Murata (inductors, MLCC), Nichicon and Nippon Chemicon (aluminum electrolytic capacitors) and Panasonic (solid capacitors) all have production capacity in Malaysia. At the same time, Malaysia is the back-end semiconductor manufacturing center in Southeast Asia, and well-known semiconductor companies such as Intel, Infineon, ASE, and ST have established factories in the country. Around 2018, three Chinese semiconductor manufacturers, Suzhou Goodtech, Tongfu Microelectronics, and Huatian Technology, announced the merger and acquisition of packaging and testing plants in Malaysia. In addition, the world's largest wafer manufacturing plant-Global Crystal has a 6-inch wafer fab in Malaysia (the other two wafer fabs below 6-inch are located in Kunshan, China and Taiwan). The closure of the city in Malaysia will affect related companies. Production capacity has brought a certain degree of impact, and the industry has reported that 6-inch wafers have begun to increase prices. Later, although Malaysia opened a green channel for important materials and semiconductor products, problems such as production reductions in corporate factories and slow shipments may still be unavoidable.

In addition, Intel’s processors (CPUs) have back-end production capacity in Malaysia (approximately 50% of the total CPU back-end production capacity), which may make CPU products that are already out of stock worse.

     The capital of the Philippines, Manila, has been "closed" (community quarantine) for 30 days since March 15. All transportation by sea, land, and air to and from Manila has been suspended. It is understood that the capital, Manila, has three major airports among the eight existing airports in the Philippines. MLCC production capacity will be hit hard.

The following related industry reports:

The MLCCs of Murata and Samsung Electro-Mechanics are mainly used in high-end markets such as smartphones, automobiles, industries, and medical care. The suspension of production and operation of Murata and Samsung Electro-Mechanics will have an impact on the high-end MLCC market.

       As the epidemic spreads, more countries will enter a state of "alert", and the industry is very worried about this.

       Another thing that attracts everyone’s attention is the unprecedented number of blowouts in US stocks. On March 19, US stocks experienced the fourth blowout of this month, which is also the fifth time US stocks blow. Among them, many stocks in the US semiconductor market have fallen sharply. More than 50%. In this way, the editor speculates that the lost money must be retrieved from other places, and it is very likely that in the future, it will face a wave of price increases initiated by the original manufacturer.

As the “epidemic” continues to ferment on a global scale, the global consumer electronics supply and demand has been frustrated. Nowadays, Samsung, OPPO, VIVO and other mobile phone manufacturers have also suspended production in Indian factories. If they cannot find a solution to avoid the risk of shutdown, it will not only affect corporate intelligence. The decline in the production capacity of smartphones will also cause the "dream" of global smartphone shipment growth in 2020 to shatter, showing a continued downward trend.

      The new crown pneumonia epidemic has spread to the world, and it has cast a shadow over the two major automotive industry centers in Europe and North America. According to incomplete statistics, as of March 19, 12 overseas car companies, including Daimler, Volkswagen, Fiat Chrysler Group (FCA), PSA, etc., have closed or planned to shut down factories. More than 100 companies. In the Chinese auto market, Ye Shengji, deputy secretary general of the China Association of Automobile Manufacturers, said that the epidemic will have a huge impact on the operation of the auto industry in the first quarter. If the epidemic is effectively controlled by the end of March, production and sales are expected to fall by about 45% in the first quarter and about 25% in the first half of the year.

Corresponding other industries are all affected to varying degrees.

      So far, based on the previous list of facts, it is not difficult to see that the biggest impact of the epidemic on the semiconductor supply chain is delivery delays, which will lead to price increases.

      However, at the same time, we call on everyone to stock up rationally. If you have a confirmed and stable demand, you must make reasonable arrangements to stock up in advance. Please find Rongde for stocking, and we will serve you wholeheartedly.