Virus Outbreak at Taiwan Factory Could Worsen Chip Shortage

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A major coronavirus outbreak at a major computer chip testing plant in Taiwan could further exacerbate the global semiconductor shortage.

Taiwanese King Yuan Electronics had to close its main location last weekend. The factory is now operating at much lower production levels.

King Yuan is one of the largest chip testing companies in the world. On Saturday, there were 182 confirmed cases of the coronavirus at the group, mainly among foreign employees.

The government has now quarantined all of King Yuan’s 2,000 foreign employees for two weeks, representing about 30 percent of the workforce. Local workers have been hired temporarily to get production going again.

Taiwan is a significant player in the global chip industry. Due to chip shortages, for example, car manufacturers have had to shut down factories or production lines.

Chip companies such as Taiwanese TSMC have announced plans to increase production to help car manufacturers. But the shortage is expected to continue for some time.