Unimicron says Kunshan plant gradually resuming production

Taiwanese chip substrate and printed circuit board maker Unimicron Technology Corp said on Wednesday its plant in the eastern Chinese city of Kunshan is gradually resuming operations after halting them to comply with COVID-19 rules.

China has put Shanghai under a tight lockdown since late March and neighbouring Kunshan has also tightened curbs to control the country’s biggest COVID-19 outbreak since the coronavirus was discovered in late 2019 in the city of Wuhan.

That had caused dozens of Taiwanese firms, many making components for the chip and electronics industries, to suspend operations.

Global companies, from mobile phone to chip makers, are highly dependent on China and Southeast Asia for production and have been diversifying their supply chains after the pandemic caused havoc.

Unimicron, which supplies Apple Inc and Intel, said in a statement to the Taipei stock exchange that the factory had suspended production from April 2 to 19.

It added it was “gradually resuming work depending on local personnel and logistics conditions”.

Unimicron’s shares rose more than 3% in morning trade, outperforming the broader index which was up around 0.7%.

However, Asia Electronic Material Co Ltd, which makes parts for laptops, mobile phones and digital cameras, said its plant in Kunshan would continue to be closed, having originally reported the suspension would last until Tuesday.

It added it had applied for government permission to be allowed to resume work and had been given permission to deliver goods and would do so from current stocks.

“It is estimated that some orders will be postponed until May,” the company added in its stock exchange statement. US News