Taiwan's epidemic has caused urgent packaging and testing capacity

The Miaoli County Government of Taiwan, China announced on June 2 that the large chip packaging and testing factory Jingyuan Electronics' Zhunan factory was shocked to report that a group of employees was infected with the disease. A total of 12 people were diagnosed, and 26 people showed positive results in quick screening. Approximately 7,300 employees under it will be tested rapid screening. Affected by this, Taiwan stocks opened on June 3, and KYE's stock price fell 4.63%. 

Not only did Taiwan's major packaging and testing factories have burst out of epidemics one after another, as the epidemic in Southeast Asian countries has deteriorated recently, many chip factories in Vietnam have ceased operations one after another, and Malaysia has also begun to implement a complete blockade. According to statistics, Southeast Asia has a 27% market share in global packaging and testing, of which Malaysia accounts for half of the market.

(Source: Economic Daily)

Large packaging and testing factories in Taiwan are clustering epidemic, facing the risk of customers transferring orders

The packaging and testing company KYEC announced on June 1 that two foreign employees of the company were diagnosed with new coronary pneumonia and have been quarantined and followed up in accordance with the instructions of the relevant units. The company will continue to be concerned and provide relevant consultation and assistance. In Miaoli County, Taiwan, China, 12 new cases of new coronary pneumonia were newly confirmed on June 2, all of which were two colleagues and dormitory roommates of KYEC who were diagnosed with foreign migrant workers on the 1st. Regarding this incident of migrant workers’ dormitory gathering, KYEC Electronics 7,300 people will be screened quickly. KYEC emphasized that the current production line continues to operate.

According to data, KYEC Group is headquartered in Hsinchu, Taiwan, and is mainly engaged in semiconductor product packaging and testing business. Its testing revenue ranks second in the world and is the world's largest professional testing plant. Its product line covers memory, logic and mixed signals, system chips, image photosensitive components, display drivers, radio frequency/wireless and micro-electromechanical systems, with a total of more than 4,000 test equipment.

It is understood that KYEC’s logic chip customers include MediaTek, Huawei HiSilicon, and Intel; storage customers include Winbond, Macronix, Jinghao Branch; drive chip customers include Novatek; foreign customers include Huida, Himax, STMicroelectronics, ADI, OmniVison, etc. Taiwanese media "Economic Daily" reported that some analysts pointed out that the current epidemic of KYEC has no significant impact on chip-side shipments. Follow-up attention will be paid to whether the epidemic will expand and whether international customers will diversify risks and transfer orders to other countries. MediaTek stated that it has contacted KYEC and has no significant impact on chip-side shipments at present, and will continue to observe in the future. Novatek said that the proportion of tests placed on KYEC is not high, and there will be deployment.