New Corona outbreak in Asia could exacerbate chip shortages worldwide

 According to a new Wall Street Journal report, a new outbreak of coronavirus in Asia could delay global supply chains and exacerbate shortages of semiconductor chips around the world.

Taiwan, a major hub for chip production, is currently facing an increase in the incidence of coronavirus. On Saturday, Taiwan's Central Epidemic Command announced that 251 newly confirmed cases had been infected with the corona virus and that 26 had died. On Friday, Taiwan's Central Epidemic Command Agency reported 287 new cases and 24 deaths.

The incidence of this dangerous virus has also been rising since early May. The Morning Post, which reports on Chinese news in the south, said:

From May 10, the incidence of coronavirus and related infections increased from one to three cultivars within a few days.

This outbreak has had a major impact on at least one major chip company in Taiwan. At Gink Yuan Electronics, one of the world's largest chip testing, fabrication and casting companies, more than 200 employees tested positive for the corona virus this month, while another 2,000 workers were quarantined. Are. The company's revenue this month has fallen by almost a third. This news was reported by the Wall Street Journal.

TSMC makes chips for Apple, Qualcomm and many other tech companies, and according to the Wall Street Journal, it has not yet been affected by the corona virus. But the company had previously warned in April that the chip shortage could continue until 2022, and it was unclear how the outbreak of the Corona virus in Taiwan could affect that estimate.

The Wall Street Journal reports that Malaysian factories have also slowed their production capacity due to the spread of the Corona virus. According to the Wall Street Journal, the Malaysian Semiconductor Industry Association has reported that average production has fallen by 15 to 40 percent. The reason for this is quarantine due to the corona virus.

Transport hubs in Asia have also been affected by the Corona virus pandemic. The Wall Street Journal reported that, for example, Yantin, Shenzhen's main container port, is only able to perform 30 percent of its normal activity.

Intel also said that global chip shortages could persist for years.

what is your opinion? Will the Corona virus pandemic lead to a worldwide chip shortage? Share your opinion with us.


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