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Taiwan firms in China hub make uneven restart from COVID curbs -Breaking

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© Reuters. FILE PHOTO – The name “COVID-19”, is seen in the drop of a needle on a syringe in this illustration, taken November 9, 2020. REUTERS/Dado Ruvic/File Photo

TAIPEI, Reuters -Taiwan companies that make electronic and chip components report mixed results on Wednesday regarding work resumption after the COVID-19 curbs in eastern China’s Kunshan. Some warnings were made about delays to deliveries until next month.

China has kept Shanghai in strict control since late March. Kunshan is also in tightening its grip to manage the biggest COVID-19 virus outbreak in China’s history since the coronavirus was detected in Wuhan in late 2019.

Dozens of Taiwanese businesses, most making components for the electronics and semiconductor industries had to close their doors.

Mobile phone and chip manufacturers are heavily dependent upon China and Southeast Asia. They have diversified their supply chain after the disaster.

Unimicron Technology Corp, a chip substrate and printed circuit board manufacturer, announced Wednesday that its Kunshan facility was slowly resuming operation.

Unimicron supplies Apple Inc. (NASDAQ:). Intel Corp (NASDAQ:) stated in a statement that the Taipei stock market had received from the factory, that production was suspended between April 2 and 19.

According to the company, it is “gradually resuming all work subject to local personnel and logistic conditions”.

Asia Electronic Material Co Ltd said the Kunshan facility, which produces parts for smartphones, tablets, and laptops, would stay closed. The suspension was originally announced to last up until Tuesday.

The company stated that they had submitted a government request to resume work, and had received permission from the government to ship goods. They would use current stock to do this.

The company stated that it was likely some orders would be delayed until May.

Complex Micro Interconnection Co Ltd, flexible circuit maker Complex Micro Interconnection Co Ltd stated that some orders were not being fulfilled until next month. They also said they would review the “detailed rules”, and then apply for production to be resumed.

Giant Manufacturing Co Ltd stated its Kunshan operation for electric bicycles was still closed. The company added that it would make overtime to get up to speed once it re-opens.

Taiwan’s Economy Minister Wang Meihua spoke to journalists in Taipei. He said that Taiwanese firms were gradually resuming their production in China but still faced logistical problems.

She added that “certainly on the effect for supply chains, there is a lot uncertainty.”

Cheng Ping (CEO of Delta Electronics Inc), a supplier power components for companies like Apple and Tesla (NASDAQ) Inc) was quoted Wednesday in Taiwan media as saying that 20% of April’s production was affected by China lockdowns.

According to him, “At this time the orders have all been placed and our customers are pressing us daily.”

Unimicron shares ended up 4.51% despite the positive news about production resumption. This was more than the closing 0.91% of the broad index.

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