“Which still is manageable, but it’s a delay.” There is “probably some delay of the components for a week or so,” Gai said. Outages in areas where smartphone modules are typically assembled could lead to some short-term delays. Power rationing could create new headaches for the tech supply chain, according to Dale Gai, a director at Counterpoint Research, although likely not as severe as the worldwide shortage of computer chips that has hammered everything from cars and washing machines to other electronics. Pegatron has a big factory in eastern China’s Kunshan city, where Taiwanese media has reported that authorities are limiting electricity supply. Pegatron - a Taiwanese firm that produces components and assembles iPhones for Apple - said Tuesday that it is cooperating with “local government policies” to “activate energy-saving mechanisms” and adjust its production line, in response to a request from CNN Business for comment about the power crisis. Major international suppliers are bracing for impact on businesses already confronting delays caused by shortages and global shipping delays. Steam billows out of the cooling towers at a coal-fired power station in Nanjing in east China's Jiangsu province on Monday. The result: not enough power to go round. At the same time, demand for Chinese-made goods has surged as the global economy emerges from the pandemic. That requires its provinces to use less fossil fuel for each unit of economic output, for example by burning less coal to generate power. The world’s biggest polluter is trying to meet a pledge that its carbon emissions will peak before 2030. Its industries are facing huge pressure from soaring energy prices, and from Beijing to tackle carbon emissions. Local officials said Monday that many firms are trying to reduce demand by working two or three days per week.Ĭhina’s State Grid Corporation said Monday that it would “go all out to fight the tough battle of power supply,” making every effort to secure residential consumption.Ĭhina was hit by a similar power crunch in June, but the situation is getting worse because of a perfect storm. Power shortages have also hit the southern province of Guangdong, a major industrial and shipping hub. The newspaper reported Tuesday that power rationing in Heilongjiang, Jilin and Liaoning provinces has “resulted in major disruptions to the daily lives of people and business operations.” And supply has been cut to some homes, reportedly even trapping people in elevators.Īn “unexpected and unprecedented” power cut hit three northeastern provinces on Monday, according to the Global Times, a state-run tabloid. A growing power supply crunch in China is triggering blackouts for households and forcing factories to cut production, threatening to slow the country’s vast economy and place even more strain on global supply chains.Ĭompanies in the country’s industrial heartlands have been told to limit their energy consumption in order to reduce demand for power, state media has reported.
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