(Corrects GlobalWafers spokesperson’s last name to Peng, not Yang, in paragraphs 7, 10)
By Wen-Yee Lee and Ben Blanchard
TAIPEI, March 11 (Reuters) – Two major Taiwanese technology companies crucial to the global consumer electronics and semiconductor supply chain said on Wednesday the conflict in the Middle East had not yet disrupted their operations, though one top executive expressed hopes for the war to end swiftly.
The escalating hostilities after the U.S. and Israel attacked Iran have rattled global markets, fuelling supply-chain concerns.
Taiwanese contract electronics manufacturer Pegatron, a supplier to Apple, Microsoft and Tesla, said the conflict had so far caused no major impact on its business, but uncertainty remained if Middle East oil supplies were cut off.
“It’s actually hard to say what will happen in the future, because roughly 20 to 30% of crude oil comes from the Middle East. The concern is that if this supply is cut off, then the situation for things like components and raw materials really can’t be accurately predicted,” Pegatron President and co-CEO Johnson Teng said in an earnings call.
“We hope what (U.S. President Donald) Trump said is true and that it (the war) will end in the short term. There will definitely be some impact, but we hope it can be contained,” Teng said.
Separately, GlobalWafers, a major silicon wafer supplier to semiconductor manufacturers including TSMC, the world’s largest contract chipmaker, said the conflict had not affected shipments or operations so far.
The company had adjusted its logistics strategy months earlier to avoid higher-risk shipping routes, spokesperson Leah Peng said in the company’s earnings call.
QATAR’S HELIUM IS KEY
GlobalWafers has reviewed inventories of key materials, including helium, a critical gas used in semiconductor manufacturing, she said.
Helium is only produced in a handful of countries, with Qatar, which has been subject to Iranian attacks, among the leading players in the industry.
“Based on existing inventory levels and confirmed supply, these materials are sufficient to support multiple years,” Peng said, adding that the company has ample supply buffers and no near-term shortages.
A South Korean ruling party lawmaker said last week the war could disrupt supplies of key semiconductor manufacturing materials including helium.
(Reporting by Wen-Yee Lee and Ben Blanchard)
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