The spread of Covid-19 into Taiwan’s electronics factories is threatening to delay semiconductor shipments, according to companies and analysts, raising the prospect of renewed disruption to an industry gripped by a global shortage. 

The country, viewed as a linchpin in the world’s chip supply chain, is suffering from its first large coronavirus outbreak. It has come against a backdrop of escalating warnings about the depth of the semiconductor shortage, which has hit everything from cars to consumer electronics.

King Yuan Electronics, a chip testing and packaging company, said on Monday that it expected an outbreak among its workers to reduce its June output and revenue by up to 35 per cent. Of KYEC’s 7,300 staff, 238 are confirmed to have been infected with Covid-19.