Shanghai’s IC industry returns to full capacity as recovery gathers pace

Electric cars produced by Tesla’s Shanghai Gigafactory are seen at a port in Shanghai May 15, 2022. This is the second batch from Tesla’s Shanghai factory to go overseas in a week. The factory resumed production on April 19. Photo: CGV

After Shanghai announced the resumption of businesses and services in phases from Monday, local authorities said on Tuesday that several construction projects and key industries had resumed operations led by the IC sector.

Wu Xiaohua, an official from the Lingang Special Zone, said local IC companies have reached full capacity, including Zing Semi and GTA Semiconductor. And the advanced equipment manufacturing sector had recovered 50% of its normal capacity.

“As of Monday, 301 enterprises above the designated size in the region had resumed operations, and the rate of resumption of work for employees reached 69% with 51,000 workers on duty,” Wu said.

Capacity utilization in the new energy vehicle manufacturing industry reached about 46 percent, with SAIC Motor Corp and Tesla realizing 50 percent and 45 percent of their production capacity, respectively, according to the official. The capacity utilization rate of companies in the entire automotive industry chain has returned to 50%.

“Local authorities, together with vehicle assembly companies such as Tesla, have worked to eliminate congestion at more than 100 vehicle component suppliers in the relatively long industry chain,” Wu added.

The Lingang Special Zone has offered financial support to small and medium-sized technology enterprises, as well as catering enterprises. These support programs covered nearly 5,000 businesses and waived nearly 210 million yuan ($31.23 million) in rent so far this month.

Authorities said 16 of 24 key construction projects in Shanghai resumed operations on Tuesday, including the capacity expansion project of display maker Everdisplay Optronic Co (EDO), a major database project owned by to tech giant Tencent and a research building for R&D. Zhangjiang laboratory. The remaining eight programs were preparing to resume.

EDO has confirmed that the project has resumed and its factories in Shanghai have been operational since the company appeared on the first batch of a “white list” of companies allowed to resume operations issued by Shanghai authorities.

The Shanghai official reiterated that the “whitelist” will be updated based on epidemic control requirements and demand from specific enterprises.

Tencent’s database construction resumption was approved by local authorities on May 3. In addition to the 457 employees working in closed loop, more than 60 other workers have obtained trade-in license codes, Tencent said in a statement sent to the Global Times on Tuesday.

A staff member at the Zhangjiang lab told the Global Times on Tuesday that the lab has not returned to full capacity as employees return to their posts in phases.

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