[Special attention] Many semiconductor factories have been suspended due to the epidemic, IC packaging and testing have become the hardest hit area, and MLCC has been affected

Since the beginning of the year, the world has faced a shortage of chips, which has led to price increases and shortages of many electronic products, which cannot be bought with money. Now, with the outbreak of the epidemic in Taiwan and the closure of the city in Malaysia due to the epidemic, this situation may be exacerbated again, and it is estimated that more products will have crazy price increases.

One, KYEC

At the beginning of June, KYEC, a major semiconductor packaging and testing company in Taiwan, said that the company was affected by the severe epidemic, and the factory had to shut down for 48 hours for employee testing and factory disinfection. KYEC has completed the rapid screening of 7,106 people in the entire factory. On June 7, 45 new cases were confirmed, including 28 foreign migrant workers and 17 local cases, bringing the total number of confirmed cases to 240.

Two days after the shutdown, KYEC announced on June 7 that all its migrant workers (about 2,000 people, accounting for nearly 30% of the company's total workforce) will be suspended immediately. Harvest and yield impact value, raised to 30% to 35%.

According to the data, KYEC's main customers include Intel, Qualcomm, MediaTek, Nvidia, STMicroelectronics, Xilinx, Novatek, Will Semiconductor, Renesas, Bosch, Winbond, Murata, etc.

Second, Jingding

On the other hand, Jingding, a semiconductor equipment factory under Hon Hai Group also located in Zhunan, recently announced that six of its migrant workers had contracted the virus and would be suspended for two days from June 7. Jingding is an equipment supplier of TSMC. At that time, it was also the first company among the many manufacturers in the TSMC equipment alliance to announce that it would follow TSMC's entry into the United States.

Jingding said that production in June will be affected, it is estimated that it will decrease by about 2%-3%, and revenue in June will also decrease by about 2%-3%; the lost production will be responded to through capacity deployment.

The latest news shows that the two-day shutdown of Jingding has been extended to three days.

Three, Taiyo Yuden

Taiyo Yuden announced on its official website on June 4 that its subsidiary in Malaysia has been suspended from May 29 to June 4. However, an employee at the Malaysian factory was diagnosed with new coronary pneumonia. In order to ensure the safety of employees, it has decided to extend the suspension of production. The time is until June 14, and the necessary disinfection and isolation measures in the factory area shall be carried out in compliance with the relevant regulations of the health department.

Taiyo Yuden has a market share of about 13% in the global MLCC market, making it the fourth largest manufacturer and the main Apple supply chain, mainly supplying high-capacity MLCCs for mobile phones with high gross profit margins and MLCCs for automobiles. Since the second half of last year, high-capacity MLCCs have been rapidly recovering in automotive demand and 5G applications have gradually opened up, which has led to a shortage of high-capacity MLCC supplies. Now Taiyo Yuden’s Malaysian plant has decided to extend the shutdown time. The industry believes that it is possible to expand high-capacity MLCCs supply and demand gap.

However, Taiyo Yuden's high-capacity MLCC shipments are affected by the epidemic. At present, only Murata, the world's largest MLCC supplier and also a Japanese factory, can take over. Therefore, Murata's shipments may be dominated by MLCCs with higher gross margins , while abandoning the low-to-mid-capacity market with lower gross profit.

Four, Seiko Epson

Seiko Epson, the world's largest frequency component factory, also recently reported that local production plants will strengthen their own epidemic prevention, and will be completely suspended for two weeks from June 1.

Some analysts pointed out that since notebook foundries still have relatively optimistic expectations for the market demand in the third quarter, and have stepped up material preparation, it will prompt small and medium-sized tuning fork-type quartz oscillators and quartz crystals to repeat the performance of last May. Prices soared.

From the perspective of Seiko Epson's complete shutdown for two weeks from June 1, it will directly affect the market supply. And on the demand side, since the peak season of the third quarter is coming, many power plants are accelerating the rush for materials, and the crystal oscillator market will be more active.

Five, super rich

In addition to Jingyuan Electric and Jingding, another packaging and testing factory, Chaofeng, also had employees who were diagnosed. On June 7, it completed the rapid screening of 4,264 employees (including about 1,000 foreign migrant workers), and there were 15 cases. There are 12 cases of foreign migrant workers and 3 cases of local employees. Due to the low positive rate, Chaofeng said that there were no plans for 2 rapid screening operations.

In terms of customers, Chaofeng Electronics mainly focuses on local MCU, network chip design factory, memory control chip factory, touch chip factory, etc., covering a number of MCU manufacturers, including Holtek, Songhan, Lingtong, Weicuan Most of the terminal products are small household appliances and consumer electronic products.

Chaofeng has not yet decided whether to suspend production. However, it is understood that nearly 70% of the customers in Chaofeng's business are packaged and tested together. Therefore, the industry said that if the work is stopped, it may affect the overall delivery period from the current 4-6 months, and the original arrangement in June Shipments of chips will be delayed until July.

TSMC is recruited

The latest news that TSMC has recruited 1 employee, who is a family member of a KYEC employee, has aroused industry attention. In this regard, TSMC only responded that the colleague has not entered the company in the past few days, and the source of infection has also been determined. It is inconvenient to explain the relevant details. This incident does not affect the company's operations. Since the outbreak of the epidemic, a total of 3 employees of TSMC have been diagnosed.

Hurry up

On the whole, the impact of this round of the epidemic on the industry should not be underestimated. If the epidemic of semiconductors continues to increase, the situation of packaging and testing may be tightened, and it may be difficult to relieve by the end of the year, and even continue to extend to next year.

The packaging and testing industry believes that the overall impact will be greater than expected by related companies, and the overall chip shipment will inevitably be delayed, making the global chip supply more chaotic. In the follow-up, we should continue to pay attention to the changes and dynamics of the epidemic, and pay attention to the fluctuation of product prices.

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