Owing to an uncontrolled spread of the COVID-19 pandemic, Taiwan has instituted Level 3 restrictions throughout the island. With employees from several tech companies testing positive for the virus, major foundries, including TSMC and VIS, are successively finding positive cases among their midst as well. Worries have therefore cropped up in the global semiconductor supply chain over whether the supply of chip can remain unaffected despite the infections in Taiwan.
Taking into account Taiwan’s share of foundry capacity within the global total, the aforementioned supply chain’s worries are not without merit. According to TrendForce’s investigations, Taiwanese foundries, including TSMC, UMC, VIS, and PSMC, collectively account for about 50% of the global foundry capacity, meaning about 50% of the global supply of chips is contingent on Taiwan.
However, TrendForce also finds that, despite the domestic spread of the pandemic, which forced various companies to institute WFH policies for their employees, most semiconductor fabs are operating without interruptions at the moment, indicating that the COVID-19 pandemic has yet to impact the production and supply of chips.
As well, both TSMC and VIS have immediately made public announcements stating that their operations remain unaffected by the positive cases. However, whether the pandemic can be sufficiently managed and whether it will hinder the supply of semiconductors going forward remains to be seen.