Taiwan COVID-19 Situation Worsens, Semiconductor Supply Shortage May Deepen

It Takes 17 Weeks from Ordering to Delivery of Semiconductors

[Photo by AFP Yonhap News]

[Asia Economy Reporter Park Byung-hee] Bloomberg reported on the 18th (local time) that the worsening COVID-19 situation in Taiwan could further exacerbate the global semiconductor shortage. Bloomberg noted that while Taiwanese companies and factories are still operating, if the COVID-19 situation worsens, Taiwanese authorities may implement broader quarantine measures.

TSMC, the world's largest semiconductor foundry, announced that starting from the 19th, it will divide teams to work in order to reduce the risk of COVID-19 infection.

Taiwan had been regarded as a model country for COVID-19 prevention. As of the 9th, no local infections had been reported. However, starting with 3 cases on the 10th, the number of confirmed cases surged. On the 12th, the number rose to double digits at 16, and from the 15th with 180 cases, it maintained triple digits for four consecutive days. According to Taiwan's Centers for Disease Control (CDC), on the 18th alone, there were 240 locally transmitted COVID-19 cases and 2 deaths in Taiwan.

From midnight on the 19th, Taiwanese authorities suspended entry for foreigners without a valid Taiwan residence permit. They also temporarily halted transit for travelers in Taiwan. Taiwan plans to maintain the border closure until the 18th of next month.

Most COVID-19 cases are concentrated in northern Taiwan's Taipei and neighboring New Taipei City. The quarantine authorities raised the alert level for Taipei and New Taipei to level 3 and restricted indoor gatherings of more than 5 people and outdoor gatherings of more than 10 people in these areas until the 28th. Schools across Taiwan will be closed for two weeks starting from the 19th and replaced with online classes.

The lead time from semiconductor order to delivery [Source= Bloomberg]

The semiconductor supply shortage is becoming increasingly severe.

Bloomberg cited a survey by Susquehanna Financial Group reporting that the time from semiconductor order to actual delivery extended to 17 weeks last month. This 17-week period is the longest since Susquehanna began compiling related statistics in 2017.

Chris Rolland, an analyst at Susquehanna, explained that the period, which was 16 weeks in the March survey, increased by one week in April, indicating a sharp increase in semiconductor delivery times for four consecutive months. Analyst Rolland also pointed out, "As it takes longer to receive semiconductor supplies, customers are stockpiling inventory and doubling their order volumes." This situation is further deepening the imbalance in semiconductor supply and demand.

This content was produced with the assistance of AI translation services.