News & Events

Everlight, Chicony see China lockdown impacts on factories

LED packaging service provider Everlight Electronics and keyboard and compact camera module maker Chicony Electronics have temporarily stopped production at their factories in an industrial park in Suzhou, eastern China, due to the local government's partial lockdown, according to the companies.

The lockdown has affected logistics and operation of production lines and will impact overall business operation in the second quarter of 2022, Everlight said.

Among Everlight's factories in China and Taiwan, the Suzhou one is the largest, undertaking production for all product lines, industry sources noted. As Everlight takes an operational strategy of keeping inventory levels of components/materials as low as possible, the company may face temporary shortage of components/materials, the sources indicated.

Chicony expects the temporary stoppage to last for 1-2 weeks and is likely to be longer if the lockdown is prolonged.

Chicony has reported consolidated revenues of NT$10.604 billion (US$372 million) for March, hitting a monthly record and increasing 27.55% sequentially and 16.61% year-on-year, and those of NT$28.846 billion for first-quarter 2022 declined 3.16% sequentially but grew 14.75% on year.

LED epitaxial wafer and chip maker Epistar plans to set up annual miniLED chip production capacity equivalent to 300,000 epitaxial wafers at its factories in China, and the plan has not been impacted by lockdown, the company said, adding the production capacity will come into operation on schedule by the end of second-quarter 2022.

However, operation of clients' factories in China may be impacted by lockdown and thus shipments of miniLED chips are likely to be affected, Epistar said.