TheLostSwede
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If you were hoping for relief from the electronics shortages, then we have more bad news for you, as China is now being hit by power outages in various parts of the country. The outages are due to shortage in production, as China is trying to balance pollution vs. production, while at the same time trying to make sure its population doesn't feel the worst of the power shortage.
Factories in at least five provinces have suspended production to try and appease the government, which in turn will lead to delays in shipping whatever part or component they're making that is an important cog in the greater machinery that produces so many of the world's goods. Not all factories are affected and the suspension is obviously temporary, but it seems like we can expect a rolling production suspension over the next few months at the very least, which suggests that not everyone will get their new shiny toy from Santa this Christmas.
The report from the AP suggests that several of Apple's suppliers have been hit and the unexpected power cuts have also caused human casualties, as 23 people were hospitalised from gas poisoning due to the ventilation system in a metal casting factory being unexpectedly shut off. This just adds to all the other issues when it comes to production and shipment of goods and with winter arriving in northern China, things are likely to get worse. Part of the reason for all of this is that the party is hosting a U.N. environmental conference in mid October, followed by the Winter Olympics in Beijing in February next year and President Xi wants to present a nation with clear blue skies to the world.
However, increasing prices for coal and gas is also causing power supply shortages, as the utility companies in China aren't allowed to charge consumers more than a certain amount and can as such not increase prices, unlike in most other countries. This makes them unwilling to increase power output, as they would have to cover the additional costs. The companies that have suspended their production are expecting to be back in production by the start of next month, if it wasn't for the fact that the first week of October is a national holiday in China. Reports coming out of Taiwan suggest that Taiwanese PCB manufacturers in China haven't been too badly affected and have so far been able to make up for the shortfall using stock.
View at TechPowerUp Main Site
Factories in at least five provinces have suspended production to try and appease the government, which in turn will lead to delays in shipping whatever part or component they're making that is an important cog in the greater machinery that produces so many of the world's goods. Not all factories are affected and the suspension is obviously temporary, but it seems like we can expect a rolling production suspension over the next few months at the very least, which suggests that not everyone will get their new shiny toy from Santa this Christmas.
The report from the AP suggests that several of Apple's suppliers have been hit and the unexpected power cuts have also caused human casualties, as 23 people were hospitalised from gas poisoning due to the ventilation system in a metal casting factory being unexpectedly shut off. This just adds to all the other issues when it comes to production and shipment of goods and with winter arriving in northern China, things are likely to get worse. Part of the reason for all of this is that the party is hosting a U.N. environmental conference in mid October, followed by the Winter Olympics in Beijing in February next year and President Xi wants to present a nation with clear blue skies to the world.
However, increasing prices for coal and gas is also causing power supply shortages, as the utility companies in China aren't allowed to charge consumers more than a certain amount and can as such not increase prices, unlike in most other countries. This makes them unwilling to increase power output, as they would have to cover the additional costs. The companies that have suspended their production are expecting to be back in production by the start of next month, if it wasn't for the fact that the first week of October is a national holiday in China. Reports coming out of Taiwan suggest that Taiwanese PCB manufacturers in China haven't been too badly affected and have so far been able to make up for the shortfall using stock.
View at TechPowerUp Main Site
