Taiwan-based manufacturing giant Hon Hai Precision Industry on Monday said continuing electricity rationing in Sichuan had so far imposed “little impact” on its operations in the Chinese province.
In a phone interview with CNA, a Hon Hai official said that although the government in Sichuan had extended electricity rationing for additional five days from Sunday, the company had so far only seen a limited impact.
The southwestern Chinese province, where many Taiwanese manufacturers, including Hon Hai, have production, is one of China’s biggest hydropower producers.
However, the province has suffered severe power shortages amid the worst heatwave and drought in six decades.
The extended power supplies to the industrial sector to ensure enough electricity for domestic use in Sichuan will add the power supply halt to 11 days until midnight Thursday.
According to Hon Hai’s annual report, the iPhone assembler has several subsidiaries in Chengdu, the provincial capital of Sichuan.
These factories are involved in the manufacturing of a wide range of products including wearable devices, projectors, networking/communications gadgets, automation equipment, digital control systems, servers, items used in base stations, and tablet computers, according to Hon Hai.
Market analysts said Hon Hai, also known as Foxconn globally, uses its Chengdu production sites as the major source for Apple Watch, iPad and MacBook assembly.
Last week, Hon Hai Chairman Liu Young-way (???) admitted Sichuan’s power rationing had affected the company’s operations in the province, but the impact stayed limited.
Liu said Hon Hai will continue to closely watch its inventories and plan overtime work schedules after the power rationing to reduce the impact.
Hon Hai is one of the largest foreign investors in China, operating a broad production base around the mainland with more than 1 million workers for international brands such as Apple, Dell, and Sony.
Other Taiwanese companies in Sichuan
Meanwhile, Taiwan Cement Corp. and Asia Cement Corp., two of the leading cement suppliers in Taiwan that also have production sites in Sichuan, said the extended power rationing in the province had also had a limited impact on their operations.
The two cement producers said they had complied with the power rationing in Sichuan by scheduling maintenance work for their factories.
The two companies said that they would continue to closely monitor the development of the power situation in Sichuan for more clues about how to come up with timely responses.
Asia Cement’s annual report showed its subsidiary in Sichuan produced 6 million metric tons of cement in 2021.
Taiwan Cement’s annual report did not disclose the firm’s production volume in Sichuan, but it indicated it had five subsidiaries in the province.
In China, Asia Cement’s annual production hit 27.46 million metric tons in 2021, while Taiwan Cement produced 66.54 million metric tons of cement last year.
Source: Focus Taiwan News Channel