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Taiwan chip packager King Yuan Electronics under pressure due to COVID cluster

Thousands of migrant workers ordered to halt duties, impacting production capacity

King Yuan Electronics

King Yuan Electronics (CNA photo)

TAIPEI (Taiwan News) — A COVID-19 cluster outbreak is putting extra pressure on Taiwan-based chip packager King Yuan Electronics as all its foreign workers have been put under quarantine, leading to reduced production capacity.

Miaoli County-headquartered King Yuan Electronics completed rapid screening for its 7,106 employees and reported 195 cases on Sunday (June 6), after cluster infections occurred in its migrant worker community, wrote UDN. The Central Epidemic Command Center (CECC) has set up a command post at the plant and ordered all its migrant workers to take paid leave at home.

King Yuan Chairman Lee Chin-kung (李金恭) said around 2,100 migrant laborers have halted work, which will last 14 days, putting a labor strain on the company that will be covered by local employees, reported CNA.

The incident is expected to dent its production and revenue in June by 30 to 35 percent, reported Liberty Times. The company posted consolidated revenue of NT$2.86 billion (US$103 million) in May, growing 10.72 percent yearly.

King Yuan Electronics is a leading chip packaging firm in Taiwan, accounting for around 3.7 percent of the global market. Its clientele includes Intel, Qualcomm, MediaTek, Nvidia, STM, Xilinx, Will Semiconductor, and more.