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China is struggling to cope with increasing power shortages, prompting many factories-including suppliers to Apple, Tesla and other major global companies-to contain or suspend operations.

At a time of power tightening, Beijing’s strict emission reduction orders are in conflict with soaring coal and natural gas prices and growing demand for electricity.

Apple supplier Unimicron Technology said that its three Chinese subsidiaries will cease production at noon on Sunday and will resume production before midnight on September 30 in order to comply with local regulations.

Although the Taiwanese printed circuit board manufacturer added that other factories will make up for the shortfall in production.

Foxconn's subsidiary Eson Precision also said that from Sunday to Friday, its factory in Kunshan near Shanghai will suspend production.

Concraft Holdings, another Apple supplier with a factory near Shanghai, said it will suspend production until Thursday, but will use its existing inventory to meet demand.

The key semiconductor industry, which has been struggling to keep up with demand during the pandemic, has also been hit.

People familiar with the matter told Nikkei Asia that several chip packaging and testing service providers that supply major global companies such as Intel, Nvidia, and Qualcomm have been notified that they will suspend production at their factories in Jiangsu Province for a few days.

Changhua Technology stated in a document submitted to the Taiwan Stock Exchange that it must abide by the government's order to stop production from Sunday to the end of the month.

According to Bloomberg News, the crisis began to shift from factories to homes, and Guangdong Province instructed residents to limit electricity consumption by using natural light and reducing air conditioning.

Nomura Securities analysts said that although the potential collapse of China's second-largest real estate developer Evergrande Group has attracted most of China's attention, the power contraction may have a lasting impact on the Chinese economy.

Nomura analysts wrote in a report over the weekend: “As market attention is now focused on Evergrande and Beijing’s unprecedented containment of the real estate industry, another major supply-side shock may be underestimated or even missed,” predicts China’s economy The 25-cent coin will shrink.