China: Worst heat wave in 60 years closes factories  

It affects Intel, Tesla and Toyota

China is going through a period of intense heat, the worst in 60 years , forcing all factories in Sichuan province to close for a week. The purpose is to relieve the electrical grid which has been burdened by the widespread use of air conditioning.

Factories include the largest electric car battery maker CATL (which supplies Tesla), Foxconn (supplier to Apple), Toyota, Volkswagen and others.

Sichuan is considered a highly important region for the semiconductor and solar panel industry, and is also a critical processing site for lithium used for electric car and smartphone batteries.

Analysts estimate that even this short interruption will lead to an increase in the prices of raw materials, which will be passed on to consumers.