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Uncertainty of global semi-conductor industry by lock-down again in Malaysia

The Covid 2nd and 3rd wave comes again.

Malaysia, due to its high level of confirmed cases recently, has lauched lockdown again. As one of the most important production base of semi-conductor in Asia, the new lockdown has lead to a more intense stiuation on global chips supply, as well as passive components.

As reported, on 10th of May, Prime minister Huhyidin announced national lockdown during the priod from 12th, May to 7th, June, so to control the spreading Covid.

Also, according to the announchment, these measures will be applied

  • forbid cross state activity, cross county activity, eat in restaurant, crowd social activity;

  • forbid most sport and entertainment activity;

  • close schools;

  • control passenger numbers in public transportation;

  • work at home

  • control numbers in mosque activity

  • forbid market opening

Yet the current measures applied in east Malaysia will continue.

Malaysia, as one of the 7 biggest export base for semi-conductors, its electronics manufacturing covering electronic component manufacturing, printed circuit board manufacturing, consumer electornics manufacturing, computer and accessories, telecommunication equipment manufacturing, etc. There are two major types of manufacturings: IDM and ODM.

Over 50 world class semi-conductor brands has their plants in Malaysia, including their local brand Unisem, Inari.

Regard to passive components, Nichicon, and Nippon Chemicon and solid-state capacitor brand Panasonics, they all have factoris in Malaysia, for resistors, theser are Chilisin, Walsin and Commos, etc.

As we see Malaysia the importance in semi-conductor industry globally, many people has a worry that the new lock down will cause the new wave of price increase and component shortage in gloabal electornic component market.

We will see what comes in the weeks coming by.


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