Several Taiwanese manufacturers in the Chinese city of Kunshan said that they would remain closed at least until today, as city health authorities have extended a lockdown due to an increase in COVID-19 cases.
Many Taiwanese manufacturers of printed circuit boards (PCBs) and other components for consumer electronics, automobiles and other products have subsidiaries in Kunshan, which borders Shanghai, where the number of COVID-19 cases has surged in the past few weeks.
Unimicron Technology Corp (欣興電子), one of the leading PCB suppliers in Taiwan, on Wednesday said it was waiting for Kunshan authorities to give a new lockdown order before it could decide whether to resume production in the city.
Photo: Reuters
Its financial situation was not likely to be adversely affected by the suspension of production, Unimicron said.
Two other Taiwanese PCB manufacturers, Elite Material Co (台光電子材料) and Wus Printed Circuit Co (楠梓電子), said they had already notified clients about shipment changes due to the production pause and would continue to abide by the city's COVID-19 prevention regulations.
The Kunshan lockdown is likely to disrupt global supply chains as orders back up and companies such as Unimicron, which supplies Apple Inc, might be affected, analysts said.
Twenty to 25 percent of Unimicron's production and 30 to 40 percent of Elite Material's production is based in Kunshan, local media reports said.
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