Shanghai slicing implementation of sealing and control, chips/cars are impacted, Tesla Shanghai Gigafactory shuts down
Shanghai cut into pieces to implement sealing control
According to the report of the Shanghai Municipal Health Commission, from 0:00 to 24:00 on March 27, Shanghai added 50 new confirmed cases of new coronary pneumonia and 3,450 asymptomatic infections. In recent days, there have been dozens of new diagnoses every day in Shanghai, and the number of new asymptomatic infections has exceeded 1,000, so the situation of epidemic prevention and control is grim.
In order to prevent the epidemic from worsening, the Shanghai Health and Health Commission issued the "Notice on Doing a New Round of Nucleic Acid Screening in the City" on March 27. The notice pointed out that in order to curb the spread of the epidemic, protect the life safety and health of the people, and realize the dynamic clearing of social aspects as soon as possible, the city's new crown pneumonia epidemic prevention and control work leading group has comprehensively reviewed the results of the previous rounds of nucleic acid screening and evaluated and judged by experts. The study decided to carry out a new round of diced and gridded nucleic acid screening across the city.
Source: Shanghai Health Commission
The limit of cutting is the Huangpu River.
East is the "City of Chips"
It can be clearly seen from the picture below that the Huangpu River runs through Shanghai and divides this international metropolis in two. For the electronic information industry, both sides of the Huangpu River have obvious industrial agglomeration attributes, and the east side is the "City of Chips" with Zhangjiang and Lingang New Area as the core areas.
Source: Baidu Map
Zhangjiang has become an industrial highland with the most complete and most concentrated integrated circuit (IC) industry chain in China, with more than 200 companies in IC design, chip manufacturing, packaging and testing, equipment and materials (2020 statistics). According to statistics from the Shanghai Economic and Information Commission, the output value of Zhangjiang's IC design industry reached more than 40 billion yuan in 2019, accounting for 70% of Shanghai's IC design industry and 28% of Shanghai's overall IC industry. Among the more than 100 IC design companies in Zhangjiang, there are many star companies such as Ziguang Zhanrui, Nanxin Semiconductor, Broadcom Integration, Jingchen, Xinpu Technology, and Suiyuan Technology.
In 2020, Zhangjiang will continue to maintain high growth. According to the data released by the Shanghai Integrated Circuit Industry Association in 2021, Zhangjiang's IC industry sales revenue is 102.788 billion yuan, while the entire Shanghai IC industry sales revenue is 207.133 billion yuan. In other words, Zhangjiang contributed half of Shanghai's IC industry revenue.
Therefore, Zhangjiang is not only strong in IC design industry, but also unambiguous in key links such as manufacturing and equipment. According to the introduction in 2021 by Liu Ying, Secretary of the Party Committee and Chairman of Shanghai Zhangjiang Hi-Tech Park Development Co., Ltd., 7 of the top 10 global IC design companies have set up headquarters and R&D centers in Zhangjiang; 7 of the top 10 national IC design companies have established headquarters and R&D centers in Zhangjiang. 2 of the top 5 global foundry companies have their headquarters in Zhangjiang; 6 of the top ten global semiconductor equipment manufacturers have their headquarters and R&D centers in Zhangjiang.
For Pudong, which was closed from 5:00 on March 28 to 5:00 on April 1, there is not only Zhangjiang in the IC industry, but also the rising Lingang New City. Lingang is determined to build a multi-billion-dollar industry group such as smart cars, IC, high-end equipment, and biomedicine. At present, in the IC industry, more than 50 companies including Wingtech, Horizon, Cambrian, Huada Jita and Xinsheng have settled in Lingang, basically forming IC design, EDA, manufacturing, packaging, testing, materials, The whole industry chain pattern of equipment.
According to the "14th Five-Year Plan for the Development of Lingang New Area of China (Shanghai) Pilot Free Trade Zone" issued by the Shanghai Municipal Government, by 2025, the scale of Lingang's IC industry will exceed 100 billion yuan.
On the whole, 70% of the scale of Shanghai's IC industry in 2020 will be contributed by Pudong, reaching 147.1 billion yuan. In order to prevent the closure and control from having a significant impact on the company's operations, many employees of IC companies live in the company and spend this special period in this way. Various IC manufacturers have also responded to Pudong's packaging control. Both TSMC Shanghai and SMIC said that production will not be affected. It is pointed out that it may affect shipments.
However, under the circumstance of blockade and control in the whole region, not all IC companies can make comprehensive arrangements. With such a concentration of IC companies in Pudong, it will definitely cause a certain degree of industrial turmoil, which will affect the companies themselves and downstream industries.
West is the "city of cars"
Pudong is a gathering of chips, and Puxi is a gathering of cars.
Although GM and Tesla factories have chosen to settle in Pudong one after another, when it comes to Shanghai's auto industry center, it is still in Puxi, especially Jiading. According to the statistics of the Shanghai Development Research Center, as of the end of 2017, there were 361 enterprises above designated size in Jiading's auto industry, including 15 automotive R&D and design companies, 245 vehicle and auto parts manufacturing companies, 38 automotive sales companies, and 63 automotive service companies. According to data from the Shanghai Statistical Bulletin, from 2018 to 2020, the added value of the auto parts industry in Jiading District reached 188.01 billion yuan.
Shanghai International Automobile City is located in Anting, Jiading District. Construction started in 2001. It has built a number of functional areas such as an automobile trade area, an automobile research and development area, an automobile manufacturing area, a racing area, and an automobile education area. At present, a Volkswagen electric vehicle super factory has also been completed and put into production in Anting. The factory is the world's first newly built MEB (Modular Electric Vehicle) platform factory with an investment of 17 billion yuan by the Volkswagen Group. In the future, Anting Jinqiao and Lingang New Area will become two growth poles for Shanghai's new energy vehicle manufacturing.
Anting Auto City is a part of Jiading's construction of a world-class automobile industry base, and the automobile industry is the pillar industry of Jiading. According to the statistics of Jiading District in 2020, the automobile industry contributes 70% of Jiading's output value, 60% of sales, 50% of GDP, 40% of employment, and 30% of tax revenue.
At present, with the transformation of traditional fuel vehicles to new energy vehicles, Jiading is also promoting the "new four modernizations" upgrade of the automobile industry. According to the "Several Policies of Jiading District on Continuing to Promote the Development of the Automobile "New Four Modernizations" and the Action Plan for Accelerating the Development of the Hydrogen Energy and Fuel Cell Vehicle Industry in Jiading District (2021-2025) issued by Jiading District on December 29, 2021 )", by 2025, the total output of the entire industry chain of hydrogen energy and fuel cell vehicles in Jiading District will strive to exceed 100 billion yuan. At present, Jiading District has gathered more than 340 companies related to the "new four modernizations" of automobiles such as Weilai Automobile, Lili Automobile, Pony.ai, Horizon, and Reshaping Technology, of which 88 are listed companies.
In terms of intelligent and connected vehicles, Anting is also promoting the transformation and upgrading of the automobile industry. In the third KPMG China Leading Automotive Technology Enterprise 50 list, including Shanghai Anting Horizon Intelligent Transportation Technology Co., Ltd., Hekun Intelligent Technology (Shanghai) Co., Ltd. and other six partners of Shanghai Auto City were shortlisted, which brought innovative impetus to the development of Shanghai Auto City.
Jiading has the layout of the entire automobile industry chain, many of which are manufacturing-intensive enterprises, and the impact of the epidemic is certainly not small.
Tesla Shanghai plant shuts down
How much the auto industry has been hit by the epidemic is actually clear from the handling of Tesla's Shanghai factory. On March 28, according to foreign media reports, Tesla’s Shanghai Gigafactory suspended production for 4 days starting on the 28th. Tesla has informed workers and suppliers of the news, according to people familiar with the matter.
It is reported that the current production capacity of Tesla’s Shanghai Gigafactory is 450,000 vehicles per year, and the delivery volume in 2021 has exceeded 400,000 vehicles, reaching 413,283 vehicles. The shutdown of these few days will affect the delivery of Tesla Model 3 and Model Y in the domestic market.
The shutdown is not expected to affect Tesla’s annual target. Some analysts believe that Tesla’s Shanghai factory will deliver 927,931 vehicles in 2022, and the factory’s future expansion target is to produce more than 1 million vehicles per year.
