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Taiwan’s coronavirus outbreak, drought and power cuts force semiconductor makers to ramp up contingency plans

  • The island’s chip makers are grappling with surging coronavirus infections, a drought and erratic power supply
  • The combination of risks threatens to knock back productivity in Taiwan’s US$10.3 billion semiconductor industry

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Taiwan’s chip makers are grappling with surging coronavirus infections, a drought and erratic power supply. Photo: Bloomberg

Standing outside Nanya Technology’s vast manufacturing complex in Taiwan, it could be mistaken for Lunar New Year, when workers leave en masse.

On a recent Friday, just a trickle of light delivery trucks stopped by the complex’s Art Deco-style reception area west of Taipei, and employees exited the 10-storey administration building alone or in pairs for lunch at a canteen across the street.

But inside the hulking factory walls at Nanya, the world’s fourth largest manufacturer of dynamic random-access memory for consumer electronics, operations are chugging along near normal – albeit with a few added precautions.

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Some workers have been sent home and factory staff are only allowed to gather in groups of three. Behind a tall glass window near the reception, employees wearing protective eye goggles and face masks could be seen sitting in front of big-screen PC keyboards two chairs apart.

Yellow Xs were taped across upholstered blue benches in the lobby to prevent people from sitting too close to one another.

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The scene reflects the new reality for the island’s powerhouse semiconductor manufacturers, who have been forced to put in place a range of contingency measures to avert production setbacks caused by a triple threat of surging coronavirus infections, a drought and erratic power supply.
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