The epidemic in Suzhou continues to heat up, and many semiconductor enterprises shut down!

According to the "Suzhou epidemic prevention and control Circular No. 18 of 2022", from 0:00 to 24:00 on February 15, there were 18 newly confirmed cases of COVID-19 and 1 asymptomatic infection in Suzhou, Jiangsu Province. Including employees of ideal automobile technology Co., Ltd., Suzhou Samsung Electronics Co., Ltd., Jinglong Technology (Suzhou) Co., Ltd., baoshide Technology Co., Ltd., Suzhou guangdai Electromechanical Equipment Co., Ltd.

Affected by the epidemic, Jinglong Technology (Suzhou) Co., Ltd., a subsidiary of Jingyuan Electronics Co., Ltd., which is located in Suzhou, cooperated with the local competent authority to carry out nucleic acid testing for all staff and suspended production activities. The company is mainly engaged in semiconductor testing and packaging, including logic and mixed signal testing, memory testing, CMOS image sensor packaging, etc.

In addition, on February 14, liandian announced that an employee of its Suzhou 8-inch wafer factory and ship was suspected of being infected with Xinguan. At present, it cooperates with the local competent authority to carry out full inspection, and the production activities are gradually suspended. After the inspection, it cooperates with the competent authority to approve and return to work.

According to the previous prospectus of Hejian chip, by the end of 2018, the top five customers of Hejian chip were MediaTek, Ziguang group, Lianyong, silijie and liandian.

However, some of the customers mainly put their chips in Xiamen Lianxin, a 12 inch factory of Hejian chip. Xiamen Lianxin was put into operation in November 2016. Therefore, combining the top five customers of ship chip in 2016 seems to have more reference significance. According to the prospectus, the top five customers of Hejian chip in 2016 were Lianyong, silijie, Zhongying electronics, Lianhua electronics and zhanrui.

Based on the above information, the shutdown of Suzhou Hejian 8-inch plant will not only have some direct impact on liandian, but also directly affect the chip supply of Lianyong, silijie, Zhongying electronics and zhanrui.

On February 14, Zhongying electronics, a chip design company, also issued the announcement on the impact of supplier epidemic on production and operation, which mentioned that the production activities of Hejian chip manufacturing (Suzhou) Co., Ltd. and Jinglong Technology (Suzhou) Co., Ltd. will be suspended, which will have an impact on the company's product production, and the product supply may be delayed for a short time due to the delayed resumption of work by suppliers, poor logistics and other factors.

Zhongying electronics said that Hejian is one of the important suppliers of the company's wafer foundry, while Jinglong (packaging and testing foundry) accounts for a small proportion of the company's business volume. Zhongying electronics said that the impact on the company's production and operation is mainly related to the resumption schedule of Hejian. If Hejian is unable to resume work due to the epidemic, it will have a significant impact on the company's production and operation.

In addition, Bosch, a German auto parts supplier, also said, "we expect Bosch's manufacturing and post operation in Suzhou to be impacted in the short term". Therefore, the epidemic prevention and control measures in Suzhou have affected the normal operation of many semiconductor companies.

It is worth noting that Suzhou Industrial Park is known as "an important window of China's reform and opening up" and "a successful example of international cooperation". Moreover, Suzhou Industrial Park is an important integrated circuit industry base in the Yangtze River Delta region. Six of the world's top ten sealing and testing enterprises have settled in the park, and nine enterprises are among the top 30 in China's sealing and testing industry. By the end of 2020, there were more than 1837 national high-tech enterprises in the cumulative validity period, 86 unicorn and Unicorn (breeding) enterprises and more than 8000 scientific and technological innovation enterprises.