April 23, 2024


It's the Technology

South Korea truckers’ strike threatens to disrupt computer chip production | South Korea


A week-long strike by truck drivers in South Korea threatens to be the most current bottleneck in the world offer chain just after business bosses warned that the output of laptop or computer chips throughout Asia faced disruption.

With the globally circulation of goods struggling with hurdles this sort of as lockdowns in China and the war in Ukraine, Tuesday observed the very first concrete sign that the strike was impacting South Korea’s world-major semiconductor sector.

The Korea Global Trade Affiliation (Kita) mentioned a Korean company that produces isopropyl alcoholic beverages (IPA), a uncooked content for cleansing chip wafers, is facing problems in shipping to a Chinese enterprise that in flip materials wafers to chip brands.

Kita claimed in a statement that about 90 tonnes, or a week’s worthy of of shipments have been delayed.

Containers pile up at a depot in Uiwang, South Korea.
Containers pile up at a depot in Uiwang, South Korea. Photograph: Hong Ki-received/AP

The strike has already price South Korea’s marketplace sector more than $1.2bn in missing generation and unfilled deliveries.

Josh Brazil, vice president of source chain at the logistics enterprise Venture44, explained delays at the port of Busan ended up “starting to skyrocket” as containers faced escalating delays finding in and out of the port.

Import container dwell instances had been at 14.29 times on Tuesday, up 258% from past week’s 3.99 times. Export container dwell instances have been 11.38 days, an increase of 225% because the strike started.

“The results of the strike are immediately functioning their way by way of the source chain and will have world ramifications,” Brazil mentioned.

The truckers’ union said in a statement on Tuesday it would keep on its standard strike and condemned the transportation ministry for remaining “neither inclined to converse nor capable of resolving the latest situation”.

The union is protesting in opposition to soaring gasoline prices and demanding minimum spend ensures. 4 rounds of negotiations with the government have unsuccessful to uncover a compromise.

On Friday, law enforcement detained quite a few dozen drivers for blocking traffic and disrupting the movement of merchandise in the vicinity of factories. Fifteen were detained for allegedly obstructing business outside an alcoholic drinks factory near Seoul.

The Cargo Truckers Solidarity union claimed that output at Hyundai’s largest manufacturing unit intricate was halved very last week owing to component shortages brought about by the strike.

This short article has been amended on 14 June 2022 to clear away a reference to Samsung Electronics immediately after the Korean Global Trade Affiliation issued a correction indicating the company’s generation was not impacted.


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