(Yicai Global) May 5 -- Many of Shanghai’s integrated circuit industry players, which include wafer makers as well as producers of packaging, tests and materials, are managing to resume production despite the citywide lockdown, now in its second month, to combat a new wave of Covid-19. For some, though, output never stopped and one firm even hit a new production high.

A major 300-millimeter silicon wafer manufacturer achieved record sales and output last month shifting more than 5 million wafers, a 7 percent jump from the month before.

“Actually, we never stopped operating. We produced at full blast in March and April, with a capacity utilization rate of almost 100 percent," deputy general manager Tan told Yicai Global. Around 100 workers at the company’s polishing workshop man two shifts to ensure 24-hour production a day, another staff member said.

The firm has nearly 700 employees living and working at the factory in so-called closed-loop management to ensure continuous production under lockdown. “Almost all office and meeting rooms have been transformed into living quarters,” Tan said. "We do not have enough accommodation at the plant, so we purchased sleeping bags and daily necessities. Workers have been sleeping on the floor for over a month," he added.

Semiconductor device maker Huahong Group has more than 6,000 employees staying at the plant.

Shanghai is a major base for China’s integrated circuit industrial chain, contributing more than a quarter of the country’s semiconductor sales last year. It is also an import hub, through which 70 percent of the country’s IC chemicals and raw materials pass.

Many businesses, though, say there is still a shortage of raw materials as transport routes between provinces remain blocked due to different regions’ Covid-19 control policies.

“The company can ensure production in the short run, as it is well stocked in terms of consumables and raw materials,” Tan said. But should the lockdown continue for another one or two months it could run out, he added. Half of its raw materials are imported and international sea and air freight has been particularly impacted by the pandemic.

“I hope the pandemic will be over soon, so that the firm can achieve its goal of doubling production this year,” he added.

Editor: Kim Taylor