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Taiwan's high-tech production comes back online

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CIOL Bureau
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While most of Taiwan’s semiconductors and other key electronics producers report their production has resumed one week after a 7.8 earthquake hit the island, aftershocks of the tremor are starting to be felt throughout the electronic toy and personal computer industries.



Most retailers have already stocked product inventory, Christmas sales are not likely to be impacted, with the exception of the PC industry. The on-going disruption in the supply of memory chips and other computer components could push PC prices up this fall. While most IC fabs suffered little or no structural damage the massive jolt knocked out power for more than a week, and many sensitive etching, deposition and other production tools were damaged or thrown out of alignment.



Still more plants were knocked out of commission, including a plant that produces ICs, as well as a chip fab. Apple Computer appears to have fared better. Apple makes its new iBook and Powerbook portable computers in Taiwan. There was no structural damage to the factories, said Apple spokeswoman Rhona Hamilton. "We don't see any immediate impact on our business, but it's too early to fully assess the situation."



Some companies have issued warnings to investors that the earthquake may hurt revenues. Genesis Microchip, a Canadian company that makes ICs for flat-panel screens and home theater TVs, said its profits may be down in the next two quarters. Taiwan Semiconductor Manufacturer Co. announced that it now projects to lose $88.2 million in sales.

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