Welcome Here  Shenzhen Mingjiada Electronics Co., Ltd.

Transaction channels are blocked, logistics are blocked, and chip delivery time is extended

Under the global shortage of "core" and the supply chain dilemma caused by the conflict between Russia and Ukraine, the escalated prevention and control measures for this round of epidemic have brought more uncertainty to Shenzhen's electronics industry. The potential impact of semi-closed management on Shenzhen's semiconductor industry is mainly in the production link (manufacturing, packaging and testing), the chip circulation link (Huaqiangbei) and the downstream related terminal enterprises in the electronics industry, including SMIC, Yageo, Huaqiang Xinke, Xinxing, STMicroelectronics joint venture, etc.

At present, we see that because the research and development of IC design can largely work remotely, and some enterprises with production lines are highly intelligent, IC design is less affected. Chip design companies include ZTE Microelectronics, HiSilicon, Huiding Technology, Desay Microelectronics, BYD Microelectronics, Duntai Technology (Shenzhen), Zhongke Lanxun, Fuman Electronics, Yuanwanggu, National Technology, etc. The chip manufacturing line requires a high degree of cleanliness, and the virus is isolated outside the isolation suits of the staff, so the possibility of shutdown is low. In addition, due to the small number of packaging and testing companies in Shenzhen, it is expected that the packaging and testing factory will not be affected by the epidemic.

Chip distribution channel: Huaqiangbei electronic market presses the pause button!

Shenzhen issued a notice saying that it will carry out three rounds of nucleic acid testing for all employees in the city, and from March 14 to 20, non-urban security enterprises will stop operating or work from home. Affected by the epidemic, all major electronic wholesale cities in Huaqiangbei are currently closed and are in a state of suspension. For small and medium-sized comfort, Huaqiangbei is an important chip purchase channel and supply station. Once it stops, it may cause "blockage" of the electronic supply chain. At present, the major electronic malls in Huaqiangbei Market have been closed, and the trading areas and logistics areas outside the city have also been emptied, and transactions such as stalls and cargo transportation cannot be carried out.

In the past, chip companies used SF Express more often, and usually the goods could arrive within 1-2 days after the normal customs declaration. But after the outbreak in Hong Kong, this time was extended to 3-5 days or even a week or so. On March 11, SF Express directly issued a notice, stating that starting from March 11, 2022, Hong Kong and Macau, China, will stop receiving and sending all express mail to the mainland. This notice is undoubtedly a bigger blow to chip foreigners. Looking forward to the possibility of a turnaround after the closure of the city on the 20th.