Taiwan’s Covid-19 outbreak is affecting chip companies

According to company analysts, the proliferation of Covid-19 in Taiwan’s electronics factories threatens to delay semiconductor shipments, raising the prospect of a new global shortage of industry.

The country, which is seen as the supply chain of the world’s chips, suffers from them outbreak of the first major coronavirus, It came in the background growing warnings about the depth of the semiconductor shortage, which has hit everything from cars to consumer electronics.

King Yuan Electronics, a chip-testing and packaging company, said on Monday that its employees were expected to catch up with June output և revenue cuts of up to 35%. It has been confirmed that 238 out of 7,300 KYEC employees were infected with Covid-19.

There has been an outbreak of migrant workers in Taiwan, including Greatek, a chip maker, Accton, a telecommunications equipment maker, and Foxsemicon, a semiconductor maker affiliated with Apple supplier Foxconn.

Taiwan reported 214 new Covid-19 cases on Tuesday, of which 211 were spread and 26 died. More than 11,000 cases and 260 deaths have been reported in the country since the epidemic began.

KYEC և Foxsemicon shut down one plant for two days each for disinfection, All four companies are testing their entire workforce, one that is expected to detect more infections.

“The supply market is already under enormous pressure. “We already have four months from Taiwan chips delivery to delivery, so any further reduction in supply capacity will exacerbate the current shortage,” said supplier Olaf Shatman. chain expert at Bain, consulting.

KYEC նման similar tests ային package chips manufactured by contract manufacturers such as Taiwan Semiconductor Manufacturing Company“These are the last steps in a complex manufacturing process before the chips are delivered to the design companies.”

One of KYEC’s customers is MediaTek, one of the world’s largest chip makers, which sells semiconductors for electronic devices, from smartphones to TVs.

Analysts say there are few options for KYEC և Greatek customers to protect themselves from access delays, as other testing and packaging companies, such as the world-leading Advanced Semiconductor Engineering, were already working at full capacity.

Bernstein chip analyst Mark Lee said the disruption was likely to be short-lived. “My guess is that this will mainly hurt smaller chip design homes, as priority will be given to large customers,” he said, adding that MediaTek reiterated its second-quarter revenue target despite KYEC’s problems.

In the rest of the chip supply chain, the risk of disruption to production is considered to be much lower, as these stages are significantly less labor-intensive than packaging, allowing companies such as TSMC and MediaTek to implement remote social work arrangements.

But analysts say it is unclear whether the measures taken by Taiwanese health authorities are enough to stop the spread of Covid-19 in electronics factories.

According to the Central Epidemic Command Center in Taiwan, migrant plant workers remained in the same dormitories.

“It simply came to our notice then Singapore:: I do not know, maybe they will take lessons, “said Patrick Chen, head of research at Taiwan-based brokerage CLSA. “They need to improve the living conditions of migrant workers.”

Taiwan has 713,000 migrant workers, according to government statistics, as well as at least 50,000 undocumented migrants. Nearly 470,000 work in industrial sectors, many of them living in or near dormitories.

Employers who are required by law to provide housing and food to migrant workers mainly transfer these services to brokers, who gather large numbers of employees in common rooms.

Although the government has installed rapid test stations in key technology industry parks and quarantines those who do well, health authorities are struggling to improve the tight working conditions for migrant workers who have not.

Coronavirus business update

How does the coronavirus cause harm from markets, businesses, our daily lives, and our workplaces? Stay tuned for more information on our coronavirus newsletter.

Register here

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button