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ON Semiconductor and Wangquan’s Malaysian plants suspended for 14 days, chip supply worsened

On July 8, according to foreign media reports, due to the high number of confirmed cases in Malaysia, the local government announced that all companies in the Senai Industrial Zone would cancel 60% of employees’ access to the factory and cease operations. :00 to 23:59 in the evening of July 22, two weeks.

Wang Chuan's Malaysian plant shuts down for 14 days, and resistance capacity drops by 30%.

Camry, a major passive component manufacturer, announced today that it has received a government order, and dozens of manufacturers including the Wangquan Malaysia plant under Camry have also been affected by the shutdown. It is expected that the suspension will begin in the evening shift today, which will affect the entire July. The resistance output is reduced by 30%.

Prior to this, due to the epidemic raging in many Southeast Asian countries, the production lines of Nippon Chemi-Con, Panasonic, Rubycon and ELNA in Malaysia and Indonesia have all been severely impacted. Taiwanese factories such as Kaimei and Huaxinke still maintain 60% capacity operations in Malaysia. , There has been a notice issued by the factory that it will suspend work until July 16.

All companies in the Senai Industrial Zone have ceased operations for a period of two weeks. Kaimei’s Wang Chuan has received a positive impact. About 60% to 70% of Wang Chuan’s resistor production capacity is located in the Malaysian plant, which is expected to affect the entire July resistor output. A reduction of 30% may further drive the tension of shortage of goods in the market.

As we all know, Malaysia is one of the most important production bases in the world, with more than 50 semiconductor companies setting up factories there. The global packaging and testing market share is about 10%. ASE, Infineon, STMicroelectronics, Intel, Huatian Technology, Tongfu Microelectronics, etc. all have packaging and testing plants in Malaysia.

Secondly, Malaysia is also an important production base of passive components for Japanese and Taiwanese factories. Huaxinke, Wangquan, and Yageo have all set up factories in Malaysia.