Shares of Walsin Technology Corp (華新科技) yesterday tumbled after the passive components supplier said that it was suspending production at its Malaysian factory because of a COVID-19 outbreak among its workers.
The suspension led to concerns that customers would shift their orders to rivals of Walsin Technology, such as Yageo Corp (國巨), dealers said.
Walsin Technology shares fell 3.66 percent to close at NT$184.5 on the Taiwan Stock Exchange, where the benchmark TAIEX was down 0.49 percent at 13,738.83 points after coming off a high of 13,893.20 on profit-taking.
Yageo shares also dropped 3.31 percent to NT$423.
Walsin Technology did not disclose how many employees at the plant had contracted COVID-19, but said that it was screening the employees and would apply to the Malaysian authorities to resume production, depending on the test results.
The plant is in Ipoh, about 180km north of Kuala Lumpur.
Malaysia, where many Taiwanese manufacturers have factories, had reported 58,847 confirmed cases of COVID-19 as of yesterday and 341 deaths from the disease, the Web site of Johns Hopkins University’s Coronavirus Research Center showed.
Foreign brokerages have said that Walsin Technology’s plant in Malaysia specializes in chip resistors used in automotive electronic devices and high-end power management chip production.
Because global demand for chip resistors remains solid, analysts expected that Yageo would benefit from the suspension of production at the Malaysian plant.
Walsin Technology’s share of the global chip resistor market stands at 22 percent, while Yageo has the largest share at 34 percent, market estimates have shown.
Walsin Technology told its clients that its plants in Taiwan, Japan and China would fill the void created by the suspension, and that the suspension should not have a material impact on its supply of components, local media reported.
FALLING BEHIND: Samsung shares have declined more than 20 percent this year, as the world’s largest chipmaker struggles in key markets and plays catch-up to rival SK Hynix Samsung Electronics Co is laying off workers in Southeast Asia, Australia and New Zealand as part of a plan to reduce its global headcount by thousands of jobs, sources familiar with the situation said. The layoffs could affect about 10 percent of its workforces in those markets, although the numbers for each subsidiary might vary, said one of the sources, who asked not to be named because the matter is private. Job cuts are planned for other overseas subsidiaries and could reach 10 percent in certain markets, the source said. The South Korean company has about 147,000 in staff overseas, more than half
TECH PARTNERSHIP: The deal with Arizona-based Amkor would provide TSMC with advanced packing and test capacities, a requirement to serve US customers Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is collaborating with Amkor Technology Inc to provide local advanced packaging and test capacities in Arizona to address customer requirements for geographical flexibility in chip manufacturing. As part of the agreement, TSMC, the world’s biggest contract chipmaker, would contract turnkey advanced packaging and test services from Amkor at their planned facility in Peoria, Arizona, a joint statement released yesterday said. TSMC would leverage these services to support its customers, particularly those using TSMC’s advanced wafer fabrication facilities in Phoenix, Arizona, it said. The companies would jointly define the specific packaging technologies, such as TSMC’s Integrated
An Indian factory producing iPhone components resumed work yesterday after a fire that halted production — the third blaze to disrupt Apple Inc’s local supply chain since the start of last year. Local industrial behemoth Tata Group’s plant in Tamil Nadu, which was shut down by the unexplained fire on Saturday, is a key linchpin of Apple’s nascent supply chain in the country. A spokesperson for subsidiary Tata Electronics Pvt yesterday said that the company would restart work in “many areas of the facility today.” “We’ve been working diligently since Saturday to support our team and to identify the cause of the fire,”
Sales RecORD: Hon Hai’s consolidated sales rose by about 20 percent last quarter, while Largan, another Apple supplier, saw quarterly sales increase by 17 percent IPhone assembler Hon Hai Precision Industry Co (鴻海精密) on Saturday reported its highest-ever quarterly sales for the third quarter on the back of solid global demand for artificial intelligence (AI) servers. Hon Hai, also known as Foxconn Technology Group (富士康科技集團) globally, said it posted NT$1.85 trillion (US$57.93 billion) in consolidated sales in the July-to-September quarter, up 19.46 percent from the previous quarter and up 20.15 percent from a year earlier. The figure beat the previous third-quarter high of NT$1.74 trillion recorded in 2022, company data showed. Due to rising demand for AI, Hon Hai said its cloud and networking division enjoyed strong sales
RSS