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Taiwan’s top chip tester, King Yuan, shuts down production and quarantines workers

(2021/06/07)


The world’s leading provider of chip testing services, Taiwan’s King Yuan Electronics (KYEC), has suspended production for two days due to a COVID-19 outbreak among the company’s foreign workers.

Taiwan’s Ministry of Health and Welfare [1]announced all related foreign workers are to be placed on quarantine with pay as COVID tests are rolled out to all of KYEC’s 7,300 employees. The government is [2]assisting with testing and has opened 18 screening lines, servicing a total of 350 to 500 people per hour.

At least 206 workers associated with the cluster have been identified so far, according to Health Minister Chen Shih-chung.

[3]

KYEC boasts the second-largest testing revenue for the semiconductor backend supply chain industry, supplying wafer probing, product testing and assembly services to the likes of Qualcomm, Intel, Nvidia, Mediatek and Novatek.

[4]

[5]

According to [6]Nikkei Asia , KYEC estimates the suspension will result in between four and six percent change in June revenue and output. The company plans to make up for lost production by running the lines “super hot.”

[7]Japan to dangle as many Yen as it takes to lure chipmakers to its shores, because everyone else is doing it too

[8]IBM says it's built the world's first 2nm semiconductor chips

[9]Taiwan to create new mega tech Ministry spanning industry policy, security, comms, and more

[10]Something fishy is going on in Taiwan as folk change name to include 'salmon' for free sushi

KYEC's woes come at the worst possible time for the semiconductor industry as a [11]worldwide shortage challenges both the electronics and automotive manufacturers and contributes to geopolitical friction.

The production halt is a first in Taiwan, which went months without community transmission of SARS-CoV-2 until an outbreak started in May and led to 8,000 cases. Before the May outbreak the island nation reported a total of almost [12]12,000 cases .

The country’s recent outbreaks were centered in Taipei, but have spread to Miaoli, which is home to KYEC, and other chipmakers including also the home of Greatek Electronics and ethernet switch maker Accton Technology Corp. As of Friday, Greatek Electronics has reported nine infections and began testing its 4,000 employees over the weekend.

Standing by our people’s side, [13]#ROCArmedForces devote ourselves to the fight against [14]#COVID19 in unity.

As the epidemic spreads, [15]#ROCArmy set up a provisional testing site in [16]#Hsinchu Science Park. They lived up to expectations & completed the site within 18 hours. Photo: HCCG. [17]pic.twitter.com/KW18bdoBGw — 國防部 Ministry of National Defense, R.O.C. 🇹🇼 (@MoNDefense) [18]June 5, 2021

The outbreak has also reached Hsinchu, home to the world’s largest chipmaker, TSMC, which pulled in [19]55 percent of semiconductor market share in Q1 2021.

Thankfully, cases in Hsinchu have remained low. According to [20]Reuters , the city's mayor has ordered the largely Filipino, Indonesian and Vietnamese foreign workers population not to rotate into other factories or travel to other parts of the island.

[21]

This is not the first time a nation's outbreak has disproportionately affected foreign workers, a population that tends to live in crowded conditions and close quarters. Outbreaks last year in [22]Singapore’s migrant worker population at one time accounted for 93 percent of 58,000 of the city-state’s official cases. ®

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[1] https://www.facebook.com/470265436473213/posts/1900929123406830/

[2] https://www.mohw.gov.tw/cp-5017-61257-1.html

[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YL3uaZudBFNz0BvVhwcIHgAAAMg&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0

[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YL3uaZudBFNz0BvVhwcIHgAAAMg&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YL3uaZudBFNz0BvVhwcIHgAAAMg&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[6] https://asia.nikkei.com/Business/Tech/Semiconductors/Taiwan-chip-supplier-halts-production-due-to-COVID-cluster

[7] https://www.theregister.com/2021/06/03/japan_growth_strategy/

[8] https://www.theregister.com/2021/05/06/ibm_2nm_semiconductor_chips/

[9] https://www.theregister.com/2021/03/29/taiwan_establishes_ministry_of_digital_development/

[10] https://www.theregister.com/2021/03/18/taiwan_salmon_chaos/

[11] https://www.theregister.com/2021/06/01/automakers_pc_chip_shortage_explained/

[12] https://data.cdc.gov.tw/en/dataset/covid19_tw__stats/resource/52eb9a7d-813d-48b1-b462-384a7c84a746

[13] https://twitter.com/hashtag/ROCArmedForces?src=hash&ref_src=twsrc%5Etfw

[14] https://twitter.com/hashtag/COVID19?src=hash&ref_src=twsrc%5Etfw

[15] https://twitter.com/hashtag/ROCArmy?src=hash&ref_src=twsrc%5Etfw

[16] https://twitter.com/hashtag/Hsinchu?src=hash&ref_src=twsrc%5Etfw

[17] https://t.co/KW18bdoBGw

[18] https://twitter.com/MoNDefense/status/1401167619344912384?ref_src=twsrc%5Etfw

[19] https://www.theregister.com/2021/06/01/q1_2021_foundry_revenue_trendforce/

[20] https://www.reuters.com/article/us-health-coronavirus-taiwan/taiwan-to-quarantine-workers-to-control-covid-spike-at-tech-firm-idUSKCN2DI060

[21] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YL3uaZudBFNz0BvVhwcIHgAAAMg&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[22] https://www.nytimes.com/2020/12/17/world/asia/coronavirus-singapore-migrant-workers.html

[23] https://whitepapers.theregister.com/

Why?

vtcodger

A serious question if I may. My understanding is that semiconductor fabrication focuses heavily on controlling/preventing contamination of the product. Therefore the facilities are climate controlled with a high degree of atmospheric filtering and a clean-room or near clean-room environment. That would seem to me to be about the last place where transmission of an airborne disease should be a problem. I must be missing something here. Why are they shutting down production?

Re: Why?

Anonymous Coward

They sleep in dormitories (probably with with bunk bends) and eat in communal dining rooms - that's when they get infected. The semiconductor workplaces themselves generally have excellent circulation, as you said.

Anonymous Coward

Maybe this is why the US just pledged 0.75 million vaccines (kind unspecified) to Taiwan. Hopefully the doses will be prioritized for those living in overcrowded conditions - wouldn't be surprised if that didn't happen though.

Complacent

Anonymous Coward

Just shows that you cannot be complacent with this virus. Taiwan had arguably the best response in the world and have been virtually COVID free for a year. Unfortunately that led people to believe the virus could never breach their borders so they didn't bother getting vaccinated. Now they are rushing for vaccines, supply is short. Similar story in other countries with good initial responses such as Vietnam, Singapore and Victoria in Oz.

Get vaccinated people!

Re: Complacent

Chris G

Complacency has been much of the problem everywhere.

After the easing of the first lockdowns, people in most places went back immediately to their old social habits, even though there was no announcement or possibilty of the virus having been eliminated.

The same after the second round of lockdowns.

Humanity's greatest enemy is itself.

Re: Complacent

Chris G

Curious at the thumb down without a counter argument, what don't you agree with and why?

My comment is based on observation here where I live and conversation with friends who live in other countries.

Anything to say?

I'm having a MID-WEEK CRISIS!