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Large Chipmaker Announces Temporary Shutdown at the Worst Possible Time

As if the current global chip shortage wasn’t already a nightmare, one of the largest Taiwanese semiconductor manufacturers has announced that two of its sites would be taken offline temporarily due to an increase in the number of confirmed cases with the new coronavirus.
Carmakers turned to temporary halts due to the lack of chips 1 photo
King Yuan Electronics says it has found that a total of 77 employees at its Miaoli manufacturing facility tested positive, so the company has decided to suspend all domestic operations for 48 hours.

The temporary shutdown is specifically aimed at the Miaoli and Hsinchu factories and started on Friday.

King Yuan says it needs to halt operations specifically to disinfect both facilities, therefore planning to resume operations on June 6.

Unfortunately, the company has already projected an up to 6 percent drop in terms of production for the month of June, but on the other hand, it says it’ll be working around the clock on recovering as fast as possible.

The global chip shortage is far from over, and more and more companies in all industry sectors are struggling with the lack of semiconductors for their products.

In the car industry, most companies turned to temporary halts of their operations as they waited for suppliers to deliver more chips that would end up powering the electronic systems on their cars.

General Motors, however, says the chip crisis is already easing, with the company now planning to increase delivers of certain models as it records strong demand in the United States and Canada.

But on the other hand, tech industry leaders have warned that the lack of chips wouldn’t come to an end too soon, with some projecting the crisis to last until at least the first quarter of 2022. The good news is that more companies have already expressed their intention to start the manufacturing of chips for the car market, including Intel, whose production lines for this purpose should be up and running by the end of the year.


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