China has imposed phased power shutdowns across various regions, affecting tech production. The move is under scrutiny despite China claiming it is for environmental reasons. It is happening during the greatest chip supply shortage in modern history, which has been causing price hikes in virtually every sector that depends on technology. This is peculiar because the aluminum capacitor industry has been moving the bulk of its business to China due to COVID restrictions in other countries. At the time it was believed to be a stable move at least until 2022.
The shutdowns will affect numerous manufacturing centers, leaving them without power for up to four or five days. Citizens have been advised to limit their air conditioning units to 78.8°F. Additionally, those in buildings with less than four levels have been asked to not use the elevators. Shopping malls are requested to shut down.
Social media has noted that this choice has coincidentally been made at the same time that coal prices have spiked. China has been repeatedly criticized for its ongoing dependency on coal. Last week it pledged that it would stop building coal power plants overseas, but in 2020, it built three times more power plants than the rest of the world combined.
Generators and electrical companies sell at fixed prices but buy coal effectively in the spot market. As coal prices spiked they are now losing money on every kwh and just refusing to produce. Regulators refuse to change prices. Standoff over who blinks https://t.co/ARk4XUHf5m
— Evergrande Turnaround CEO Balding 大老板 (@BaldingsWorld) September 26, 2021
Many have praised China for its crackdown on bitcoin mining, some for environmental reasons and others due to its effect on component shortages, but those intentions are coming into doubt. People are now asking why.
Why is there an energy crisis in China? They threw out all of their BTC mining power, I thought it was all making the sky dark due to being coal powered… and now they have coal shortages too?
— Kochko (@Kochko911) September 26, 2021
Anyone have insight to what has happened in the energy industry there this summer?
The list of companies affected is long, because they are dependent on these manufacturers of small components, PCBs and / or the companies that test and package them. It reads like a who’s who of the industry: Apple, Tesla, Intel, Nvidia, Qualcomm, NXP, Infineon, Pegatron, Foxconn suppliers and others should feel the effects.
Sources: ComputerBase, NY Times