Heat wave: Apple and Tesla are closing their doors and inflation is on the rise again!

News hardware Heat wave: Apple and Tesla are closing their doors and inflation is on the rise again!

China is currently in the middle of a heat wave and this has a direct impact on us. Large companies like Tesla, Apple or Intel find themselves having to close the doors of their factories. It is also the raw materials in electronics that are impacted head-on.

A heat wave with global consequences

Further proof that China is the technological heart of the world. The impacts of the heat wave in the country have serious repercussions on the rest of the world. The province of Sichuan has thus decided to close its factories for six days. The aim is to save electricity so that the 84 million inhabitants can survive.

The current heat spike is the worst in more than 60 years in the country. Temperatures exceed 40 degrees Celsius. The direct consequence is an increase in the use of air conditioners. Become legions in the country, the consumption of these machines at full power is colossal. Especially since at the same time, production has also decreased.

The drought caused a sudden evaporation of water reserves, as well as rivers. The region relies heavily on hydroelectric dams, resulting in a severe lack of electricity.

Lights out for China

The only way to save money is to stop consuming non-essential electricity. The city of Luzhou, for example, has decided to cut the streetlights at night. But it is above all the closure of factories in the region that will greatly help.

The Chinese battery manufacturer CATL, supplying Tesla, is forced to temporarily close its doors. Intel is also forced to close its factories, as well as Foxconn. It is however a spearhead of the production of iPhone and iPad. A disastrous consequence, especially with the very upcoming announcement of the future iPhone 14. Foxconn reassures all the same by explaining that this factory mainly makes iPads, so the disturbances should not be too important.

Unfortunately, the impact doesn’t just stop when the plant closes. China is one of the main exporters of raw materials such as lithium in particular. It is however an essential element, electric cars as well as smartphones. Costs could skyrocket. This will result in further accelerating inflation.

The semiconductor industry, on the other hand, risks taking a big hit. However, the manufacturers all want to be reassuring. Volkswagen for its part says there should be no delay too important in its production line.

Rising component prices are inevitable according to many analysts. The shortage of Lithium and Silicon will have a global impact. Other provinces have also closed the doors of their businesses. The impact is therefore difficult to measure at present. But there is no doubt that the return to normal will be complicated.

Temperatures are currently still very high, approaching the 45 degrees and not dropping below 32 degrees at night. Difficult for the moment to see an improvement in weather conditions. The Chinese government may well continue these restrictions; further paralyzing the rest of the world.

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