Taiwan chip supplier halts production due to COVID cluster

Local outbreak surge in the island risks supply chain security

20210604 KYEC

Left: Military officers disinfect areas of Wanhua, Taipei, following a surge in COVID cases on June 2.  Right: A King Yuan Electronics production site (Photos by Getty Images and KYEC YouTube site) © Getty Images

CHENG TING-FANG and LAULY LI, Nikkei staff writers

TAIPEI -- A leading Taiwanese semiconductor supplier will suspend all domestic production for two days after reporting a COVID infection cluster, risking the continuity of the island's crown-jewel chip supply chain at a time of a global shortage.

King Yuan Electronics, the world's leading chip testing service provider, said it will suspend production at sites in Miaoli and Hsinchu -- the hub of the island's chip industry -- that account for around 80% of its revenue.

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