Dell, Amazon supplier halts Taiwan production amid omicron fear

[Klaralven]

TAIPEI -- Compal Electronics, a supplier to Dell and Amazon, is halting production at its factory in northern Taiwan for a week after several employees tested positive for COVID-19 as the latest wave of the omicron variant spreads in Taiwan.

The world's No. 2 contract notebook manufacturer said it will suspend manufacturing activities at its plant in Pingzhen in Taoyuan City -- one of Taiwan's key industrial hubs -- after three employees tested positive, according to a stock exchange filing on Monday night.

The company said it has tested all of its 1,800 staff and suppliers who visited the plant recently. The weeklong production halt will impact full-year revenue by less than 0.1%, it noted. Compal generated 1.23 trillion New Taiwan dollars ($44.6 billion) in revenue in 2021.

"We will assess the situation and will leverage our overseas capacity, such as in Vietnam, to support the Taoyuan factory if it is necessary," a Compal spokesperson told Nikkei Asia.

This is the first time in several months for a large tech manufacturer in Taiwan to halt production over COVID fears. The tech-reliant economy has seen a surge in infections over the past few weeks, with Taoyuan at the center of the latest wave.

https://asia.nikkei.com/Spotlight/Coronavirus/Dell-Amazon-supplier-halts-Taiwan-production-amid-omicron-fear

[OAITW r.2.0]

1. Hold on to your laptops and PCs.

Used market is going up.