40.4% of Semiconductor Manufacturers in Changwon Currently Experiencing Production and Delivery Disruptions

[Asia Economy Reporter Gong Byung-sun] About 40% of semiconductor-related manufacturers in Changwon, Gyeongnam, reported experiencing disruptions in production and delivery due to the worsening semiconductor supply shortage.

On the 3rd, the Changwon Chamber of Commerce and Industry announced the results of a survey on the business environment of companies in the Changwon area, conducted from the 10th to the 28th of last month, targeting 145 manufacturing companies in the Changwon region.

Among 52 companies related to semiconductors and their upstream and downstream sectors, 24 companies (46.2%) responded that "there has been no significant impact so far, but if prolonged, an impact is inevitable." Twenty-one companies (40.4%) answered that "production or delivery is currently being affected," while the remaining 5 companies (9.6%) and 2 companies (3.8%) responded "no significant impact" and "others," respectively.

By type of impact, the difficulties cited included delivery disruptions caused by production delays at primary contractors due to semiconductor supply issues (58.4%), sharp increases in semiconductor procurement prices (19.5%), difficulties in semiconductor supply itself (11.7%), and production difficulties caused by production delays at partner companies due to semiconductor supply issues (10.4%).

However, the perceived conditions showed a positive aspect. Regarding perceived conditions (rated on a 5.0 scale, with scores above indicating improvement and below indicating deterioration), the 145 manufacturing companies in Changwon city gave scores of 5.46 for order volume and 5.34 for production volume. On the other hand, profitability was rated at 4.43, indicating deterioration.

By industry, the electrical and electronics sector felt the greatest improvement in order volume and production volume, responding with 6.16 points for order volume and 5.89 points for production volume. The machinery sector felt the greatest deterioration in profitability, giving a score of 4.05.

As reasons for the perceived deterioration in profitability, 38.1% cited rising international raw material prices, 25.6% pointed to increases in producer prices such as wages, 13.1% mentioned rising domestic and international logistics costs, and 10.2% cited demands from primary contractors to lower delivery prices.

This content was produced with the assistance of AI translation services.