Resilinc Releases 2016 Taiwan Earthquake Supply Chain Impact Analysis
Report Warns of Potential Downstream Impacts to Major High Tech OEMS and Brands
Milpitas, CA – February 18, 2016. Around 4 a.m. on February 6th, a 6.4 magnitude earthquake rattled southern Taiwan at the start of Lunar New Year, the island’s largest nationwide holiday. With a current death toll of 114, it is the deadliest earthquake to hit the island since the “921 Earthquake” of 1999. Taiwan is the world’s leading producer of semiconductors and integrated circuits (IC). As such, high tech companies are left to ponder how this earthquake could affect the global electronics supply chain. While initial reports of the quake emphasized minimal damage and interruption to the major chip foundries concentrated in southern Taiwan, there are less apparent global supply chain impacts that will likely be felt in the near future.
This analysis is organized into five parts:
- Summary of the earthquake event
- Review of the global importance of the Taiwanese IC industry
- Examination of the confirmed impacts to chip manufacturers on the island
- Discussion of interruption risk factors associated with modern chip fabrication plants
- Recommendations on how to mitigate impact to supply chains for future similar events
The report discusses the specific and confirmed impact to major semi-conductor, electronics components and assembly service providers including UMC, Innolux, and ChipMOS, and warns that there are many other smaller manufacturing operations in the affected area that have not released a public impact statement.
“Many of these companies located in the Southern Taiwan Science Park in both Tainan and Kaohsiung are dwarfed by these huge chip manufacturers,” said Neil Shenoi, EventWatch® Program Analyst at Resilinc. “That does not mean they are any less important to IC supply continuity from Taiwan. Companies should monitor Taiwan/Tainan based companies in the coming weeks because it is not always the large players that are at risk, but smaller sub-tier partners who might supply a Tier-1.”
Resilinc is the leading cloud provider of supply chain resilience and risk management intelligence and analytics. Industry leaders like Amgen, GM, and EMC rely on Resilinc to mitigate risks end-to-end, while achieving long-term competitive advantage, and building brand and shareholder value. The Resilinc SCRM solution platform and services deliver the fastest time-to-value and the lowest resource Impact. It accomplishes this by providing the world’s largest repository of supplier and part intelligence leveraging the power of our “LinkedIn” supplier community; the most robust set of dashboard visualization and patent-pending analytic functionality for pro-active planning and risk quantification; and the only solution that personalizes your impact analysis by automatically connecting incidents with your supply chain map so you don’t have to.