Hello everyone! This is Cheng Ting-Fang from Taipei, covering semiconductors, supply chain, hardware and tech trends. This week Taiwan — Asia’s key tech economy — has suffered its worst Covid-19 surge since the pandemic started in 2020, recording more than 65,000 daily confirmed cases, the highest in Asia.
But for executives across the region’s tech supply chain, the more immediate challenge is restoring production after severe month-long lockdowns in the greater Shanghai area, the world’s most important electronics manufacturing hub. Apple has warned that the lockdowns could cost it up to $8bn, while Quanta Computer, whose most advanced MacBook production lines are near Shanghai, reported a nearly 40 per cent monthly sales slump from March. It was a similar story for Pegatron, whose most important iPhone assembly plants are near Shanghai: revenue plunged 35 per cent in April from the previous month.
The chips are up
At a time when demand for smartphones, PCs and TVs shows signs of slowing, Taiwan Semiconductor Manufacturing Co. has further unsettled the chip and electronics industry.