(Yicai Global) May 18 -- Shanghai's semiconductor manufacturing companies have returned to 90 percent output despite the challenges of operating during the lockdown, now in its second month, as the city battles an outbreak of Covid-19, Yicai Global learned from a series of interviews.

New energy vehicle chipmaker Shanghai GTA Semiconductor’s plant in the city’s Lingang district has been in so-called closed-loop management since March 15 with almost 1,000 workers stationed at the plant and has been operating at full capacity, Acting General Manager Zhou Hua told Yicai Global.

Although the Covid-19 outbreaks blocked transport routes, hindering the delivery of supplies, GTA was soon able to get a special pass from the municipal government that allowed the smooth transport of raw materials, finished products and supplies for the workers, Zhou said.

It is thanks to the support of the government, together with the firm’s own contingency plans, that the Lingang plant was able to keep operating at normal. When taking into account output at its factory in Xuhui district, GTA is back to over 90 percent capacity, he added.

Shanghai is home to some of China’s biggest chip manufacturers such as Semiconductor Manufacturing International Corp. and Huahong Hongli Semiconductor Manufacturing. Last year its integrated circuit industry grew 20 percent from the year before to CNY250 billion (USD39.3 billion), accounting for a quarter of the country’s total output and ranking second only to neighboring Jiangsu province.

Huahong said 6,000 of its employees have staying at its five plants in closed-loop management for over 50 days to ensure that production is not interrupted otherwise the whole downstream supply chain would be affected, according to a company source.

A steady supply of raw materials is key to keeping the production lines humming, said a manager at Shanghai Xinsheng Semiconductor Technology, which supplies key raw materials such as 12-inch large-size silicon wafers to chipmakers.

Around 600 staff have been staying at its Lingang factory since March 27 and although manpower is tight, it managed to achieve record output in April, a 7 percent improvement on the previous record set in March.

“Our production lines run round the clock and staff work in two shifts,” the manager said.

Imported Parts

A large number of key components needed to make semiconductors are imported and the China headquarters of many such materials and spare parts firms are in Shanghai. HMG Supply Chain, based in Zhangjiang Hi-Tech Park, is back to between 70 percent and 80 percent capacity, General Manager Shen Yi said. As of May 16, the firm had collected over 1,500 shipments of 2,500 imported components from Pudong International Airport and completed more than 2,600 deliveries containing 3,700 core parts to over 100 businesses across the country.

"We have 20 spare parts warehouses that supply more than 20 semiconductor factories in 12 cities," Shen said, adding that if one warehouse is out of action, the other warehouses can be used.

Editors: Tang Shihua, Kim Taylor