Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Taiwan sees limited COVID-19 impact on economy, chip sector

Published 05/18/2021, 05:10 AM
Updated 05/18/2021, 05:16 AM
© Reuters. FILE PHOTO: The Taiwan Semiconductor Manufacturing Co Ltd (TSMC) headquarters building is seen in Hsinchu, northern Taiwan, November 19, 2015. REUTERS/Pichi Chuang

© Reuters. FILE PHOTO: The Taiwan Semiconductor Manufacturing Co Ltd (TSMC) headquarters building is seen in Hsinchu, northern Taiwan, November 19, 2015. REUTERS/Pichi Chuang

TAIPEI (Reuters) - Taiwan sees a limited impact on its economy and its key semiconductor industry from its COVID-19 outbreak and is well prepared to ensure chip fabs can operate as normal, officials said on Tuesday.

Tech-heavyweight Taiwan is experiencing an unusual spike in domestic cases after months of keeping the pandemic well under control, and has closed schools across the island and tightened curbs in the capital, Taipei.

National Development Council Minister Kung Ming-hsin told reporters that as long as the outbreak can be brought under control by the end of June then there would only be a 0.16 percentage point hit to gross domestic product.

However, that would rise to 0.53 percentage points if it took to the third quarter to control the outbreak, he said.

Taiwan's economy grew at its fastest pace in more than a decade in the first three months of 2021 as the "work from home" boom sparked strong global demand for the island's hi-tech exports.

The government has repeatedly said Taiwan's economic fundamentals remain strong.

Science and Technology Ministry official Andrea Hsu told the same news conference that tech companies had had a year to prepare continuity plans in case of a rise in COVID-19 cases, including splitting production teams.

No contact is being permitted between Taiwan's main science parks where many of the chip fabs are located, she said.

Economy ministry official Yang Chih-ching praised Taiwan's firms, including semiconductor companies, for their anti-pandemic steps.

"They've been very proactive," he said.

© Reuters. FILE PHOTO: The Taiwan Semiconductor Manufacturing Co Ltd (TSMC) headquarters building is seen in Hsinchu, northern Taiwan, November 19, 2015. REUTERS/Pichi Chuang

Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world's largest contract chip maker, said on Monday that from Wednesday it would start operating in separate teams to minimise the risk of COVID-19 infections.

As a major producer of semiconductors, Taiwan is central to global efforts to resolve a chip shortage that has shuttered some car plants around the world and is now starting to affect consumer electronics.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.