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Covid in Malaysia sharply increases chip shortage

Three Malaysian semiconductor manufacturers (Infineon Technologies AG, NXP Semiconductors NV, and STMicroelectronics NV) have been hit hard by the rising COVID cases in the region-jeopardizing plans to lift the lockdown and restore full capacity. news, Via Bloomberg The number of reported daily infections has exceeded 20,000, an average of 7 days, higher than the more than 5,000 in June-this means that a large number of COVID infections are waiting to have more impact on the semiconductor manufacturing industry. The delta variant of COVID has played a particularly shocking role in recent infection cases across the country.

If these semiconductor manufacturers report the infection of three concurrent employees, Malaysia’s current containment policy will force these semiconductor manufacturers to cease operations for up to 14 days-while Infineon and STMicroelectronics have announced the closure of some of their production facilities due to COVID . Due to the strategic importance of these companies (and other companies) in the general semiconductor business and their strategic importance to Malaysia’s overall economy, these companies (and other companies) have received privileged treatment. During the June lockdown, the company was allowed to continue to operate with 60% of the workforce, and when more than 80% of its employees were fully vaccinated, they would be able to recover to 100%.

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