Vanguard International Semiconductor Corporation (VIS) today announced that its Fab 3 in Taoyuan experienced a power supply issue at 12:10 PM, leading to a power outage.

VIS stated that as a precaution, the cleanroom was promptly evacuated, and all personnel were confirmed to be safe. Power was restored at 12:34 PM, and the company has taken steps to fully resume operations, with all facility systems now back to normal.

The company is currently conducting standard checks on the equipment and evaluating any potential impact on products. VIS has immediately informed the affected customers of the situation, and the impact on operations is still under assessment.

(Photo credit: VIS)

The impact on display panel production in China caused by the ongoing power outage has been manageable, although assembly plants in the downstream supply chain and component makers（for metal and plastic parts, for example）in the upstream supply chain have had to suspend operations as a result. Nevertheless, assuming these work stoppages conclude by the end of September, the aforementioned companies in the downstream/upstream supply chains will likely be able to make up for their lost production capacities by issuing overtime work. Hence, the power outage’s impact on their operations is ultimately expected to be rather limited.

In addition, it appears that the power outage will NOT affect the installation of new production capacities at all. However, given that power outages have continually taken place in cities including Guangzhou and Suzhou, attention needs to be paid to whether such power outages become a regular, cyclical occurrence for various cities in the future, especially without prior warning. Frequent, unannounced power outages may pose a challenge to panel manufacturers’ capacity allocation efforts.

（Image credit: Unsplash）