According to supply chain, on September 26, the semiconductor packaging and testing service provider ASE Semiconductor issued a notice to its customers that its Kunshan factory will suspend production from September 27 to September 30.

ASE stated in the notice that due to the strengthening of the implementation of the double reduction of energy consumption policy by the Chinese government, they received an urgent notice from the local government at 00:00 on September 26, power restriction will last from 8:00 on September 26 to 24:00 on September 30, 2021.9.27

ASE said that through negotiations with government agencies, it has obtained a one-day window to complete the production of work in progress (WIP), and the period of power restriction will be adjusted to 8:00 on September 27, 2021 to 24:00 on September 30, 2021. During this period, there will be no output in the factory.

ASE did not specify in the notice the detailed impact of the suspension on product delivery, but industry insiders worry that the expanding power restriction order may affect semiconductor production in mainland China.