in 60 years it was a worst heatwave in China! factories are forced to shut down!

A scorching heat wave!

China’s Sichuan province ordered all factories to shut down for six days to ease a power shortage in the region where the heat wave sweeps across the country. Sichuan is a key manufacturing location for the semiconductor and solar panel industries, and the power rationing that hit factories of some of the world's biggest companies, including Apple (AAPL) supplier Foxconn and Intel (INTC). China's lithium mining hub is a key component of electric car batteries that shut down raw material costs.

Urgent notice!

From Monday to Saturday, one of China's largest provinces, Sichuan, with 84 million people, asked 19 of the region's 21 cities to suspend production at all factories. For six decades, China has been facing its fiercest heat wave, with temperatures crossing 40 degrees Celsius in dozens of cities. It was an extreme heat that had demand for air conditioning in offices and homes, putting pressure on the power grid.

Related: China’s worst heatwave in 60 years is forcing factories to close | CNN Business

Sichuan is currently facing the most serious and extreme moment in power supply. Last week Luzhou switched off the city's street lights at night to save electricity and reduce pressure on the electricity grid. Since July, the southwestern province is also a key hydropower hub in china that has been gripped by extreme heat and drought.

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Raw materials in Sichuan!

Sichuan is rich in mineral resources such as lithium and polysilicon, a key raw material in the solar photovoltaic and electronics industries. Several international semiconductor companies have plants in Sichuan, including Texas Instruments (TXN), Intel, Onsemi, and Foxconn. Chinese lithium battery giant CATL supplies batteries to Tesla and also has a factory in this region.

Also Read: China’s Heatwave Turns Deadly as Industrial Power Cuts Begin

Factories shut down throughout the week and tightened the supply of polysilicon and lithium, where prices increased. The Sichuan power cut could affect production, including Sichuan Haowu Electrochemical, an auto part manufacturer, and Sichuan Lutianhua, which produces fertilizers and chemical products.

Conserve electricity!

Other major Chinese provinces, including Jiangsu, Anhui, and Zhejiang, apart from Sichuan, urged businesses and households to conserve power as the heat wave depleted electric supplies. Offices have been urged to increase their temperatures to above 26 degrees Celsius or shut down the lift services for the first three floors to conserve electricity.

Risk in a heat wave!

China had extreme heat that caused crop failure in many parts of the country. There is a continuous high temperature in many places where the price of vegetables rose by 12.9%, which is higher than the same period in the previous year.

 Fu Linghui, the spokesperson for the National Bureau of Statistics, pointed out that extreme heat cause droughts in agricultural areas in the south and north; there had rainfall and flooding, which also resulted in some crop failures. Autumn grain production is in August and September so pay attention to the impact of natural disasters, disease, and insects on country food production.

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