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Chip shortage could worsen after COVID-19 outbreak shuts down company in Taiwan

Chip shortage could worsen after COVID-19 outbreak shuts down company in Taiwan
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A COVID-19 outbreak has shut down a Taiwan-based chip-testing company, which could worsen the global chip shortage, Bloomberg reported on Monday.

Taiwan’s Centers for Disease Control announced in a statement on Sunday that King Yuan Electronics Co. shut down their main plants on Saturday after a reported 182 cases among foreign workers. 

Taiwan’s government ordered 2,000 overseas workers at the company to enter a 14-day quarantine, according to Bloomberg.  

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King Yaun spokesperson Aaron Chang told Bloomberg that the company resumed operations on Sunday night at lower production levels, with full production expected after the quarantined employees return.

“The company sees no major impact on annual finances and businesses,” Chang said. 

Taiwan has been going through a coronavirus outbreak since mid-April, with health officials reporting more than 11,000 local cases and 260 deaths in the last five weeks. 

The current outbreak is dealing a blow to chip manufacturers, with multiple companies shutting down or slowing down production due to the virus. 

China and the U.S. have explored ways to boost their domestic chip production amid the worldwide shortage.