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Typhoon Gaemi Disrupts Supply Chain in Taiwan and China
On July 25th, Typhoon Gaemi ripped through Taiwan and China’s Fujian coastline, disrupting the supply chain with rough seas, power outages, and flooding in its wake. The typhoon was one of the strongest to hit Taiwan in eight years with wind gusts up to 141 mph. Thousands of electronic parts and more than a hundred manufacturing facilities are impacted in addition to thousands of people subject to evacuations and power outages.
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Typhoon Gaemi’s Impact in Taiwan
Officials closed schools and offices last Wednesday ahead of Typhoon Gaemi’s landfall in Taiwan, forcing the cancellation of hundreds of flights. Over 800 people were injured and 8,000 evacuated due to the storm’s intense wind and rain. According to Taiwan’s Central News Agency, over 870,000 households lost power during the typhoon, with Kaohsiung and Tainan in southern Taiwan being one of the hardest-hit areas.
Off the southern coast of Taiwan, the rough seas wreaked havoc on shipping lanes. A Tanzania-flagged freighter sank just south of the Kaohsiung port. According to Taiwan’s Coast Guard Administration, 8 other cargo ships in the area ran aground during the storm.
Even further south off the southern coast of the Philippines, an oil tanker capsized in Manila Bay. The tanker was carrying 1.4 million liters of oil, and the spill created an oil slick 4km long.
Despite the intense storm, according to Reuters, Taiwan Semiconductor (TSMC) said it was prepared for the storm and did not expect any impacts to its normal production.
Typhoon Gaemi’s Impact in China
Hundreds of factories were ordered to suspend production as 27,000 people were evacuated in northeast China due to Typhon Gaemi, according to Reuters. The storm made landfall along the Fujian province coastline on Friday as one of the most powerful storms of the year to hit China.
Heavy rains spread north into the Liaoning province, forcing hundreds of chemical and mining companies to suspend operations and 30,000 people to be evacuated. Trains were suspended in the region as well due to the heavy rain damaging tracks.
Assessing Typhoon Gaemi’s Impact on the Supply Chain
Taiwan is home to 92% of the world’s advanced semiconductor production. As of July 30th, over 12,000 parts and 436 facilities are within the affected impact area of Typhoon Gaemi according to our Supply Chain Risk Management (SCRM) tool. Of those parts, over 150 are already showing a medium risk on our Open Market tool, which may indicate that there could be a potential shortage brewing for these parts and procurement managers are seeking these components from secondary sources.
How to Protect Your Supply Chain
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