Large industrial firms resume production

Almost 95 percent of large-scale industrial enterprises in Shanghai have resumed operations, including key artificial intelligence and integrated circuit industries, city officials said on Monday.

Despite the influence of COVID-19, the city will make more efforts to boost capacity and the economy through the collaboration with other provinces, especially those in the Yangtze River Delta region, they said. 

By the end of February, 94.5 percent of the city’s large-scale industrial firms — those with annual output over 20 million yuan (US$2.86 million) — had resumed operations. Around 64 percent of employees were back at work with production capacity at 66 percent, said Zhang Jianming, vice director of the Shanghai Commission of Economy and Informatization.

Some industry giants, including Sinopec Shanghai, Huahong Group and SMIC, were at almost full capacity. Others, such as China Baowu Steel Group, Shanghai Pharmaceuticals and Shanghai Electric, also at high capacity, Zhang told a conference.

The giants represent the city’s economic lifeline, covering energy, chips, steel and pharmaceuticals, related to millions of people’s daily lives.

By February 28, enterprise power supply had recovered to 83.6 percent in Shanghai with industrial supply at 80.3 percent.

Almost all software and information service firms have resumed operations, with the big data industry at 90.4 percent, industrial Internet industry at 94.2 percent, AI and integrated circuit industries at 100 percent, according to the commission. 

As it is highly automated, the influence of COVID-19 on chip manufacturing is very limited, according to researcher TrendForce.

Shanghai-based SMIC and Huahong are the top wafer plants to produce chips on the Chinese mainland. 

Large-scale firms in Jinshan District have all resumed operations. Giant firms, those with an annual output over 1 billion yuan, in Qingpu, Minhang, Pudong, Songjiang, Jiading and Baoshan regions have all resumed operations. 

To help firms and boost the economy, Shanghai has rolled out 28 measures like rent reduction, favorable tax, finance support and support for flexible working. The city has also drafted a White Paper list to help firms, covering large-scale firms, innovation and high-tech firms and key vendors in a nationwide supply chain.

Under a special mechanism to support firms in the industry chain covering the Yangtze River Delta or nationwide, Shanghai has helped 42 local downstream firms resume operations which are closely related to 318 firms nationwide, of which 217 in the delta region. Meanwhile, over 100 local firms have also resumed operations which are required by partners and clients in Suzhou, as well as Zhejiang and Anhui provinces. 

The city has simplified processes to apply for work resumption, including online applications. 

In the future, Shanghai will strengthen efforts to speed up capacity recovery through good implementation of the 28 measures. It will help firms to meet challenges and solve difficulties in recruitment, capital flow, supply chains like component shortages and logistics and transport, Zhang added.