Wuhan Flash Industry Chain Survey

Wuhan and its surrounding cities have gathered a large number of domestic and even global major flash factories and related industry supporting enterprises, which are increasingly short of the global giants in recent years.

More than that, Wuhan, known as "the thoroughfare of nine provinces", has provided strong logistics and transportation advantages for these flash factories.

In January 23rd, Wuhan began to "seal the city". Since then, various cities in Hubei have stepped up epidemic prevention measures. Under the influence of the epidemic, it will inevitably affect the production and supply of the whole semiconductor upstream and downstream industry chain.

Fortunately, the industry characteristics of the semiconductor industry have led to less impact on most manufacturers. In February 12th, the head of the IC design company in the Yangtze River Delta region introduced to the twenty-first Century economic report reporter that, in terms of its subdivision area, the production of products was mainly abroad, so it had little impact. The design is mainly for employees to use their servers and computers to work through the network connection. In general, the impact must be lighter than that of restaurants, movies and other offline scenes. Basically, work can accomplish tasks as usual.

"But there is a problem that tests need to be carried out in the laboratory, which will have an impact." He said.

Production is continuing.

Wuhan, Hubei, is one of the core cities of China's semiconductor industry. The Yangtze River storage, Wuhan Xinxin and Wuhan Hong Xin are both very important factories in China.

Canalys analyst Jia Mo also told reporters on twenty-first Century economic report that Wuhan is a global flash manufacturing center with a high degree of relevance to semiconductor industry.

At present, as manufacturers of wafers, even during holidays, the rhythm of these manufacturers has always been stable.

Xu Shaofu, an analyst at Ji Bang consulting, told the twenty-first Century economic analysis reporter that from the semiconductor industry chain, the wafer fabrication and sealing industry mainly involves production processes. These two areas will not be affected by the epidemic too much for the time being. "Because the factory maintains a 24 hour operation without shutting down, the production arrangement is well planned in advance, plus the degree of automation of the plant is much lower than that of the assembly plant, and the manpower dependence is relatively low, so at least so far, it can maintain the planned production volume."

Previously, the Wuhan semiconductor research center has pointed out that the Yangtze River storage and the new core of Wuhan are mainly in the NAND Flash field. The two companies have been required to work at home outside the front line, and the factory workers are still operating normally according to the annual schedule, and strictly control the entry and exit of personnel. "At present, no production line is partially or completely shut down, that is, the quantity of production will not be affected in the short term."

However, the agency said that although the Yangtze River storage and Wuhan Xinxin are committed to arranging enough manpower for production line to maintain the operation of the plant, they will be affected by the measures of the closure of the city, and enterprises will still have some worries about resuming work.

Western securities also pointed out that in addition to the annual repairs, the Fab factories in Wuhan generally did not shut down for the whole year, but they still seem to be operating normally. In the short term, the impact is not big, but with the extension of the time cycle, if the logistics arrangement and factory personnel are fully in place, it may still have to wait for a certain time.

"Changxin storage is one of the key enterprises of China semiconductor, with state-level special license, which is not affected by the current ban. Therefore, customers in China can ship on time." Chi Bang consulting pointed out in the report that the current capacity of the Wuhan plant in the Yangtze River is only about 1% of the total NAND Flash industry, and the direct impact on the market supply is limited. However, if the epidemic is extended, it may affect the expansion plan originally scheduled for the second quarter, which needs to be tracked continuously.

Recovery rate will be low.

Although production is uninterrupted, the epidemic does not have any effect on the operation of the factory itself.

Xu Shaofu believes that in terms of shipment, it depends on transport arrangements in the logistics industry. In view of the current situation, some enterprises still need to maintain the delivery line through special application pipelines.

"Successive measures for urban closure and traffic control may affect the transport efficiency of logistics, coupled with the delayed start up, the downstream module plants and assembly plants are unable to receive the goods at present, which results in the acquisition of finished products by wafer makers. Even if the packages are intact, they may not be sent to the client end for testing or assembly plant assembly. They can only be temporarily stored in the factory." He said that the progress of shipping is not great for wafer fabrication, but has a deep impact on the sealing industry.

It should be noted that although the supply chain industry is making great efforts to ensure that the resumption date is not too late, some enterprises require the workers to do 14 days' isolation after resuming work.

"If the trans provincial personnel are affected by traffic control and can not work on schedule, even if the automation level of the semiconductor industry is high, it will increase the difficulty of personnel scheduling and even change the frequency of raw materials supply. In this way, the semiconductor industry may carefully assess the possibility of slowing down production speed or selective production, resulting in a need to readjust the delivery. Degree. " Xu Shaofu said that if such a situation occurs, with the limited supply of manpower and resources, unnecessary research and expansion projects may be postponed.

To sum up, the foregoing IC design company leader told the twenty-first Century economic report reporter that the epidemic will bring short-term impact on the resumption of production and import and export, which requires a little time to react, but not too long. Now the industry chain has been gradually resumed R & D, and the corresponding factories have been working.

Other aspects that need attention are, on the one hand, from the staff. "The manpower shortage of various manufacturers is a major factor affecting operation in the short term, but it is also difficult to find a better way to deal with it."

In addition, it is hoped that in terms of industrial policies, relevant departments can support staff salaries, rent and so on, and appropriately subsidize or reduce or reduce the pressure on the industry.

Financing needs are more urgent.

These are only short-term effects. Further, it is related to investment and industrial development confidence in semiconductor industry.

This is particularly important for the semiconductor industry with a longer investment cycle. At present, the leading semiconductor factories abroad have gone through several decades of development history. The side shows the depth of development and the huge demand for funds in the industry. Only then can the semiconductor industry "sit on the bench for ten years".

"In the short term, there is a certain effect. We are now working at home." The director of investment institutions in Shenzhen, a semiconductor business, told the twenty-first Century business news reporter that, in general, there was little change in the attention of the agency to the semiconductor industry, but the epidemic would be more or less a constraint on the pace of investment.

For example, investment institutions generally require face-to-face exchanges, and even go to factories or office areas to investigate. The occurrence of the epidemic limits the smooth development of online communication, and naturally affects the development of the next investment plan.

"For new projects, we will generally get to know by telephone conference, the investment rhythm will be postponed later. But this is not a choice made for reassessment of the industry. " The director pointed out that for some semiconductor companies with relatively urgent financing needs, the current financing needs will become even more urgent.

The head of the chip design company also pointed out that if the duration of the epidemic is prolonged, it will have an impact on the investment in the semiconductor industry. "It will bring pressure to companies that are raising money now. Because the two sides can not face each other; of course, the investment circle itself will be under pressure. This will indirectly affect the development process of the semiconductor industry chain.

Of course, confidence support may come from the expectation of 5G application, especially online life is infinitely and quickly integrated into our today.

In this regard, Xu Shaofu believes that the epidemic has not yet been observed in China's 5G development has a significant role in promoting. "Perhaps the use of telecommuting, video conferencing, or cloud computing may increase significantly at the moment, which will lead to the expected psychology of the telecommunications industry. However, 5G technology may not be necessary if the current terminal needs are considered. However, in the application of the expected 5G industry, there may be places for discussion, such as telemedicine. "

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