Taiwan firms flag rapid spread of East China COVID disruptions (updated)

Unimicron Technology

13/04/2022 05:38

(Recasts, adds details)
    TAIPEI, April 13 (Reuters) - Around 30 Taiwanese companies,
many making parts for electronics, said on Wednesday that
government COVID-19 control measures in eastern China had led
them to suspend production until next week, as disruption from
the measures spreads.
    China has put Shanghai under a tight lockdown since late
March and neighbouring Kunshan has also tightened curbs to
control the country's biggest COVID-19 outbreak since the
coronavirus was discovered in late 2019 in the city of Wuhan.
 urn:newsml:reuters.com:*:nL2N2WB059
    Global companies, from mobile phone to chip makers, are
highly dependent on China and Southeast Asia for production and
have been diversifying their supply chains after the pandemic
caused havoc.
    The Taiwanese companies making announcements to the stock
exchange included Asia Electronic Material Co Ltd  4939.TWO ,
which makes parts for laptops, mobile phones and digital
cameras.
    It said its plant in Kunshan would be closed until next
Tuesday, adding it was "hard to estimate" the financial impact.
    EFUN Technology Co Ltd  3523.TWO , which makes parts for 
liquid crystal displays, said its plant in nearby Suzhou would
also be closed until Tuesday, and would resume operations when
the government gave the go-ahead, though added it did not
foresee a financial impact for the time being.
    Chip substrate and printed circuit board maker Unimicron
Technology Corp  3037.TW , which also supplies Apple Inc
 AAPL.O  and Intel  INTC.O , said late on Tuesday its Kunshan
operations closure would also extend to next Tuesday.
    It said it was "integrating" its resources and manufacturing
to lessen the impact on customers, adding its two Kunshan
subsidiaries accounted for around 13% of consolidated revenue in
the first quarter of this year. 
    Taiwan's Pegatron Corp  4938.TW , which assembles iPhones
for Apple, said earlier on Tuesday it had suspended operations
at its Shanghai and Kunshan plants due to the government's
strict COVID-19 protocols.  urn:newsml:reuters.com:*:nL2N2WA0LD

 (Reporting by Ben Blanchard; Editing by Christopher Cushing and
Kim Coghill)
 ((ben.blanchard@thomsonreuters.com;))