Taiwan Apple supplier says global chip shortage will worsen without COVID-19 vaccines

A Taiwan Apple supplier has warned that the global chip shortage will worsen without a large and timely increase in COVID-19 vaccinations in the country.

Taiwan Apple supplier says global chip shortage will worsen without COVID-19 vaccines
Apple Xinyi A13 in Taiwan

A leading Taiwanese semiconductor supplier, King Yuan Electronics, the world’s leading chip testing service provider, will suspend all domestic production for two days after reporting a COVID infection cluster, negatively impacting chip supply chain at a time of a global shortage.

Cheng Ting-Fang and Lauly Li for Nikkei Asia:

The company confirmed that 77 employees — including 73 migrant workers, most from the Philippines — have contracted the coronavirus at its biggest manufacturing site in Miaoli as of Friday. The number could rise as the company is testing all its 7,300 employees with government help, an official told Nikkei Asia.

KYEC estimates the production suspension will affect revenue and output by 4-6% in June. “There will be surely an impact on output for June,” company president A.H. Liu told Nikkei Asia. He said the company will initiate “super hot” production runs to make up for the lost days.

King Yuan, better known as KYEC, is a key supplier to Qualcomm, Intel, Nvidia, Mediatek and Novatek.

KYEC’s production suspension could aggravate the global chip shortage, which has already hit a swath of players from automobile makers to consumer electronics giants… “If the majority of the population in Taiwan do not receive COVID vaccines soon, I fear it is only a matter of time until more and more companies will be forced to halt production due to the spread of the virus,” an Apple supplier executive told Nikkei Asia.

Fewer than 570,000 of Taiwan’s 23.5 million people, or around 2.4%, have received a first COVD vaccine dose.

The island is short of vaccines. Japan and the U.S. — both important trading partners and key buyers of Taiwan-made semiconductors — have said they will donate vaccines to Taiwan.

MacDailyNews Take: What’s the issue? Are companies like Apple, Intel, etc. that face the very real possibility of significant supply chain disruptions afraid to help by procuring and donating COVID-19 vaccines en masse to Taiwan for fear of angering their Chinese overlords?

Earlier this month, Terry Gou, the billionaire founder of major Apple supplier Foxconn, said that his charity plans to apply to import five million doses of BioNTech SE’s COVID-19 vaccine into Taiwan as soon as possible.

7 Comments

  1. The Taiwanese CDC estimates 60% of Taiwanese will receive their first jab by October and their second by December. Add to that another two weeks to be considered “fully vaccinated.” So, the next four to six months don’t look pretty for Taiwan and Apple’s supply chain in Taiwan. Private sector efforts by Terry Guo and others to secure vaccines for are being blocked by China. The German government said they are “unable to help” Guo. Disgusting! So far, only Japan has had the balls to do something – 1.2 million doses just arrived in Taiwan on Friday from Japan. Glorious! Seems logical to expect delays to the A15, M1, M1X, camera components snd such. Seems logical that some upcoming Apple products may be delayed.

      1. I wonder if we will ever hear any ranting and raving about Joe’s and Hunter’s collusion with China from the liberal media. Wow, so quiet! That must mean no collusion. Or maybe it means collusion between the media and ‘they who shall not be named.’

        1. Oh, I can assure you that I’m listening carefully. I heard very clearly last week when I was notified by the Taiwanese CDC that my vaccination appointment was cancelled due to lack of availability. I heard very clearly. Yesterday, we received 1.3 million doses from Japan. I heard AND saw that! Thank you Japan! Until doses from the US Gov are in peoples’ arms, it is just hot democrat political vaporair. Of course, the US owes Taiwan nothing – we know and understand this. But, if Biden wants to help, then help. If not, he can STFU and move on back into bed with Commi Xi. Zzz…

        2. “The US Government is committed to getting vaccines to Taiwan this month…” Uh-huh.
          Read on… it is all via the COVAX program. The US gov in cooperation with the COVAX program. WHO has their hands in the COVAX program? The WHO. WHOse dick is the WHO sucking? Commie China Dick. Good, I’ve made my point. It is all political smoke and mirrors until the jab is in the arm. Thank you dear China for your assistance. The WHOrld thanks you!

  2. Taiwanese CDC just announced Saturday noon that a cluster of nine Wuhan cases has been discovered at another factory – Greatek Electronics. More cases to follow within 24 hours, I’m sure. Greatek to temporarily suspend operations for an unannounced period of time.

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