(Yicai Global) Feb. 15 -- United Microelectronics Corporation, one of the world’s leading chipmakers, has halted work temporarily at its plant in the Chinese city of Suzhou because one of its employees is suspected of having contracted Covid-19.

UMC has begun testing all staff at the eight-inch wafer factory for the virus, the Taiwan-based firm said late yesterday. Operations will resume once local authorities give the go-ahead, it added.

Suzhou yesterday reported seven locally transmitted Covid-19 cases and an asymptomatic one. Two of the confirmed cases were at the Suzhou Industrial Park, where UMC’s plant is located.

The pandemic and other supply chain issues have led to a global chip shortage since last year. Closure of the UMC plant can only exacerbate the problem, an expert in the semiconductor field told Yicai Global.

UMC is the world’s third-largest wafer foundry by market share, and the Suzhou plant, which started operations in May 2003, has a monthly capacity of 80,000 wafers and a total workforce of 2,000.

UMC’s first-quarter performance will not be affected by the suspension, the firm said, adding that the average price of its products is still expected to increase 5 percent in the period, with the gross margin remaining at about 40 percent. The Suzhou plant, operated by its unit Hejian Technology, contributed about 5 percent to UMC’s revenue, it noted.

Shares of UMC [NYSE: UMC] closed down 1.8 percent at USD9.49 apiece yesterday.

Editors: Dou Shicong, Futura Costaglione