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TSMC: COVID-19 may cause supply chain disruption

SemiMediaEdit
April 28, 2020

TSMC recently stated that the COVID-19 pandemic may adversely affect the company in various ways, including the interruption of the semiconductor supply chain.

TSMC warned that the pandemic caused a decline in global customer demand, and the forced closure of factories or offices may cause potential production delays. The pandemic has forced TSMC to adjust its business operations and establish an epidemic prevention committee.

Although TSMC expects that the COVID-19 pandemic may ease in June, TSMC pointed out in its 2020 annual report announced on the 21st that the COVID-19 pandemic may have a significant adverse impact on TSMC's business and operating performance in three ways. First, interrupt the operation of the global semiconductor supply chain and TSMC's suppliers; second, the decline in global customer demand; third, the potential production delay due to forced closure of factories or offices or partial operations.

The TSMC annual report also mentions that, because the pandemic is still ongoing and likely to intensify, there are great uncertainties in its development and impact, including whether the current or continued spread of the pandemic will lead to slower economic growth or global recession. TSMC said it is currently impossible to predict the impact of the pandemic on business and operations.

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