By Greg Gao

A majority of semiconductor companies in Shanghai, such as TSMC and SMIC have managed to maintain normal operations for now despite the local authority imposing a staggered city-wide lockdown on March 28 to contain an Omicron outbreak, which posed a fresh disruption risk to China’s semiconductor industry, reported Shanghai-based JW Insights analyst Mu Mian.  

Chinese leading chipmaker SMIC said operations remain normal at its Shanghai factories, with the support of various government departments and the company’s efforts. The company added it would conscientiously implement the decisions and arrangements of the state and local governments on epidemic prevention and control. 

SMIC has a 12-inch wafer fab and an 8-inch wafer fab in Shanghai. Its SN1 12-inch wafer production line is SMIC’s most advanced FinFET process fab, with a planned monthly production capacity of 35,000 wafers and a process technology level of 14nm and below. Currently, it has built a monthly production capacity of 6,000 wafers.

The world’s leading chipmaker TSMC also said the lockdown would not impact production at its foundries in the city, and it will comply with pandemic prevention measures. The foundry giant has an 8-inch wafer fab in Shanghai, TSMC China Company Limited, Fab 10. The site is located on Wen Xiang Road in Songjiang District in the city’s southwest.

China’s No 2 chip maker Hua Hong Semiconductor(华虹半导体) also said it has maintained full-scale operations and necessary personnel were recalled back to the company’s dormitory and closed management was adopted to ensure normal operation. The company has three 200mm wafer fabs in Shanghai Jinqiao and Zhangjiang in Pudong District, with a monthly production capacity of about 174,000 wafers.

The Chinese wafer production lines based in Shanghai also include Shanghai GTA Semiconductor(积塔半导体)’s special process production line project, GalaxyCore(格科微电子)’s 12-inch CIS integrated circuit R&D and industrialization project, and Wingtech(闻泰科技)'s 12-inch automated wafer manufacturing center.

The silicon wafers manufacturer Wafer Works(合晶) also has a factory in Shanghai. The company said that the personnel arrangement and production of the Shanghai factory will not be affected, but shipments may be delayed.

The semiconductor assembling and testing services provider ASE Group(日月光) announced that it is complying with local government policies to implement strict management, the current lockdown has a very limited impact on its production and revenue. At the same time, it is expected that its logistics and employee health care costs will increase.

The global EV giant Tesla announced a four-day shutdown of its Gigafactory in Shanghai from March 28 and has notified employees and suppliers

Semiconductor assembly company Inventec(英业达) said that its Shanghai plant will be suspended from March 28 until April 1. During the shutdown period, its plants in Czech and Mexican will increase shipments. Whether the Shanghai plant will continue to be suspended in the future remains to be seen. The Inventec Shanghai plant mainly produces servers, intelligent equipment products.

Quanta Computer(广达), a manufacturer of notebook computers and other electronic hardware, emphasizes that it will follow relevant local epidemic prevention measures.