With the intensification of the new crown pneumonia epidemic in many Southeast Asian countries, many companies that have opened factories there have been greatly affected.

Among them, Japanese companies such as Toyota and Honda have been forced to suspend production, and this suspension has had an adverse effect on the global supply chain.

Malaysia has implemented a city-wide lockdown on June 1, and factories such as Toyota and Honda will also stop production. The “Nihon Keizai Shimbun” article stated that if the epidemic in various countries continues to expand, it may cause a huge blow to the international supply chain.

The daily number of new infections in Malaysia has almost doubled in the past two months, reaching 9,020 on May 29, a record high.

The number of new infections per 1 million population exceeds 200, which is higher than that of India. With the vaccination rate still low, the more infectious mutant virus is spreading. The Malaysian government will ban commercial activities in most industries before June 14. The automobile and iron-making industries only allow the usual 10% of their employees to go to work.

Toyota has ceased production and sales in principle since June 1. Toyota’s local production in 2020 will be approximately 50,000 vehicles. Honda will also stop production at two local factories during the lockdown period. This is one of Honda’s main production bases in Southeast Asia, with an annual production capacity of 300,000 motorcycles and 100,000 automobiles.

Malaysia has been closed indefinitely, and until now there has been no accurate news of unblocking it. The closure of the country this time has had a considerable impact on the global supply chain.

The third quarter is a tradition in the electronics industry, and the demand for electronic components has soared. Passive components are indispensable parts for electronic terminals. Malaysia is one of the most important production sites for passive components in the world. The production projects cover almost all key passive component items. Malaysia is blocked all over the country, and the local electronics factory can only have 60 people to work. , Will inevitably affect the output. In the traditional peak season of the electronics industry, the demand for passive components will inevitably cause an imbalance of supply and demand. The situation of related orders shifting is worthy of attention.

Entering May, the number of daily infections in Thailand and Vietnam also hit new highs.

The impact of work stoppages caused by the epidemic may radiate to a wider range along the industrial chain. Thailand is the largest car producer in Southeast Asia, and most Japanese car companies, represented by Toyota, have factories here. Vietnam has South Korea’s Samsung Electronics’ main smartphone factories. Thailand and Vietnam have respectively become export bases to the Middle East, Europe and the United States and other countries in the world. If the operation of these factories is affected, the scope of influence will not be limited to ASEAN.

In recent years, many companies have set up factories in Southeast Asia to export intermediate products such as parts and components in their own countries. Statistics from Japan’s Mizuho Research Technology show that the export value of nine ASEAN countries (calculated in terms of added value) has increased to 2.1 times in the 10 years ending in 2019. The growth rate is the highest among the five major regions in the world, with a share of 10.5%.

Contributed 13% of the global packaging and testing, impact to be assessed

According to reports, Malaysia’s move is likely to bring variables to the global semiconductor industry, because the country is one of the most important semiconductor packaging and testing bases in the world, accounting for 13% of the global packaging and testing share, and it is also the world’s top 7 One of the semiconductor export centers. Malaysian investment bank analysts have said that from 2018 to 2022, the average annual revenue growth rate of the local electronics sector is expected to reach 9.6%. “Whether it is EMS, OSAT, or R&D and design of electronic products, Malaysians have successfully consolidated their position in the global supply chain.”

Currently, Malaysia has more than 50 semiconductor companies, most of them are multinational companies, including AMD, NXP, ASE, Infineon, STMicroelectronics, Intel, Renesas and Texas Instruments, ASE, etc., so compared to other Southeast Asian countries, Malaysia has always had its unique position in the global semiconductor packaging and testing market.

According to previous statistics, Intel has a packaging plant in Kulim City and Penang, Malaysia, and Intel processors (CPU) have back-end production capacity in Malaysia (approximately 50% of the total CPU back-end production capacity).

In addition to the packaging and testing field, Malaysia also has foundries and some major component manufacturers. Global Wafer, the world’s third largest supplier of silicon wafers, has a 6-inch wafer factory in the local area.

Industry insiders pointed out that Malaysia’s closure of the country is currently relatively short, but the uncertainty brought about by the epidemic may add variables to the global semiconductor market.

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