A new coronavirus outbreak in Taiwan raises concerns about TSMC's ability to maintain production levels. Blockades could be imposed throughout the province of Taiwan increase along with the number of new cases.
Although only 1 000 cases and 12 deaths have been reported in the country in all of 2020, the number of local cases in Taiwan is increasing. There were 29 cases on Friday, 180 on Saturday, 206 yesterday and 333, which translates into an outbreak that would require measures to be controlled. And this could affect the production of the manufacturer TSMC.
More limitations to TSMC due to Covid
The DigiTimes portal reported that this resurgence had led some to worry that potential coronavirus-induced lockdowns in Taipei and other cities may pose a threat to the supply chain of the local chip manufacturing industry. TSMC is said to have stepped up its already strict precautionary measures against coronavirus, which could affect production.
For TSMC it is difficult to maintain production levels at this time. They have made commitments to develop new technologies and increase production, but it is still expected that chip shortage and components will last until 2023 despite those efforts. Any disruption related to this COVID-19 resurgence would make it much more difficult to meet demands for graphics cards, Apple devices, and virtually any electronic product.
With the rise in Covid cases in Taiwan, TSMC and other Taiwanese smelters will face enormous pressure to maintain production levels while facing the possibility of new coronavirus-related restrictions. This would mean fewer people working and slower rates to guarantee safety and sanitation distances. For this reason, there is a close relationship between the effects of the pandemic and the shortage of components worldwide. If factories like TSMC have to reduce their production to ensure the safety of their employees, they cannot meet the ever-increasing demand for electronic products.
Source: Tom's Hardware
