A resurgence of COVID-19 infections in India and Southeast Asia, as well as a spike in confirmed cases in Taiwan, may cast clouds on the IC market outlook this year, according to industry sources.
The COVID-19 resurgence has rapidly slowed down handset sales in India, for example, prompting China-based brand vendors to cut back their chip and component orders and revise downward their shipment forecasts this year, the sources indicated.
On the supply side, meanwhile, concerns have been raised about the stability of Taiwan's IC industry supply chain amid a sudden rise in the number of domestically transmitted COVID-19 infections, the sources said, adding if a nationwide lockdown is imposed, chip production and deliveries locally in Taiwan could be disrupted.
Taiwan is where TSMC runs its major fabs particularly sub-7nm process fabrication lines.
Given Taiwan is a hub for semiconductor manufacturing, plant shutdowns due to lockdown restrictions may worsen the already-tight chip supplies, the sources noted.
TSMC has said that starting May 19, further precautionary measures against COVID-19 will be imposed on its premises. The measures include operating in segregated teams and work from home, said the company, adding that it will be paying close attention to the development of COVID-19 locally in Taiwan and will make adjustments to its own rules on a rolling basis in response to government policies.
