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Impact of Chinese power cuts on Taiwanese firms remains to be seen: Official

Many tech firms have suspended production, but Apple supplier Foxconn says it's unaffected

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In this Nov. 28, 2019, file photo, smoke and steam rise from a coal processing plant in Hejin in central China's Shanxi Province.

In this Nov. 28, 2019, file photo, smoke and steam rise from a coal processing plant in Hejin in central China's Shanxi Province. (AP photo)

TAIPEI (Taiwan News) — It’s too early to tell the extent to which Taiwanese businesses will be affected by China’s widening power shortages, according to Taiwan’s economic authorities.

The government is closely watching the development of the power crunch and has learned that the energy restrictions in effect until Oct. 1 are expected to have a limited impact on Taiwanese firms, CNA cited Minister of Economic Affairs Wang Mei-hua (王美花) as saying at a legislative interpellation on Wednesday (Sept. 29).

Taiwanese tech companies that have suspended operations due to the incident include Unimicron, EMC, Sunon Electric Industrial Co., Concraft Holding Co., Eson, and many more, DPP Legislator Tsai Yi-yu (蔡易餘) pointed out.

Major Apple supplier Foxconn has seen its plants in Kunshan, Jiangsu Province, affected by the measure, but not in Shenzhen, its biggest production base in China, per Business Next. Another Apple product manufacturer, Pegatron, said its smartphone production relies mostly on green energy and thus has not felt the heat from the fallout of the blackouts, wrote UDN.

The energy restrictions have spread to over 10 provinces in China, including Jiangsu, Zhejiang, and Guangdong, hitting sectors such as heavy industry, solar power, and light.

Taiwanese business expert Hsieh Chin-ho (謝金河) has lashed out at Taiwanese firms that have a presence in China for adopting a “double standard” toward power cuts that have occurred in the two countries.