Alexa
  • Directory of Taiwan

Asian COVID surge disrupts semiconductor supply chain

Rising shipping costs could contribute to global inflation trend

  2037
The current COVID surge in several Asian countries is causing supply chain bottlenecks 

The current COVID surge in several Asian countries is causing supply chain bottlenecks  (CNA photo)

TAIPEI (Taiwan News) — The recent surge in COVID-19 cases in several Asian countries has disrupted the global shipping and semiconductor supply chains, reports said Tuesday (June 15).

While the region was spared major outbreaks during the earlier phase of the pandemic, the current situation coupled with relatively slow vaccination campaigns has created a bottleneck for global trade, UDN reported.

The outbreaks in the Chinese province of Guangdong have affected shipping out of Shenzhen, while COVID surges in Malaysia and Taiwan have slowed down the export of semiconductors, which are already in short supply amid rising demand.

If these problems continue, they may contribute to higher inflation and drag down economic growth around the world just as it is recovering from the pandemic.

Shipping is becoming more expensive as 160,000 container ships line up to enter Shenzhen’s harbor, where those wishing to unload may face a wait of up to two weeks, reports said.

Analysts said Taiwanese businesses now face the task of reducing the impact of the coronavirus on their workforce and damming the spread of infections. Otherwise, the economy as a whole may face even more severe problems.


Updated : 2021-07-30 07:22 GMT+08:00