Voltage Drop Disrupts Production at Taiwan Science Park

A voltage drop incident occurred on Wednesday in Taiwan's southern Science Park, causing production disruptions at several semiconductor companies.

United Microelectronics Corporation (UMC) reported slight production impacts, including the scrapping of some wafers and the need to restart certain machines. However, UMC stated that nearly all machines have resumed production, and the company is working overtime to accelerate production and mitigate the effects of the voltage drop. UMC maintains its second-quarter targets, expecting flat wafer shipments and average selling prices (ASPs) compared to the previous quarter.

Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest semiconductor foundry, confirmed a brief voltage drop at its Nanke plant but expects no significant operational impact. TSMC is well-positioned to handle the voltage drop incident without major consequences.

This voltage drop incident adds to the challenges faced by the global semiconductor industry. The industry is already grappling with chip shortages, resulting in price increases and shipment delays. The voltage drop is likely to compound these challenges, potentially leading to further price hikes and delays.

The Taiwanese government has acknowledged the chip shortage issue and is taking measures to address it, including investing in new semiconductor manufacturing facilities. Efforts are also underway to enhance the reliability of Taiwan's power grid.

The voltage drop serves as a reminder of the critical importance of a reliable power supply for the semiconductor industry. With the industry heavily reliant on electricity, any disruptions to the power grid can significantly impact production processes.