Typhoon Gaemi hit the coastline of Taiwan and China’s on July 25th with wind gusts up to 141 mph. Gaemi was one of the strongest typhoons to hit Taiwan in the past eight years, with rough seas, power outages and severe flooding, causing significant supply chain disruptions.
The storm made landfall over Fujian Province on the afternoon of July 25 as a tropical storm, then weakened into a tropical depression before dissipating as it moved northwest over Jiangxi Province early on July 27. Affected provinces include Anhui, Guangdong, Fujian, Henan, Hubei, Hunan, Jiangxi, Jilin, Shanxi, and Sichuan, with at least 290,000 people evacuated ahead of Gaemi’s landfall. As of July 28, there have been at least 12 fatalities related to the storm.
Impact in Taiwan and China
Prior to Typhoon Gaemis’s landfall in Taiwan, officials closed schools and offices, forcing the cancellation of hundreds of flights. The storm’s intense wind and rain caused 8,000 people to evacuate and injured 800. Additionally, over 870,000 households lost power during the typhoon.
Off the southern coast of Taiwan, a Tanzania-flagged freighter sank just south of the Kaohsiung port, while 8 cargo ships ran aground.
Typhoon Gaemi made landfall along the Fujan province coastline in China as one of the strongest storms of the year. 27,000 people were evacuated, and hundreds of factories were ordered to suspend production.
As the storm traveled north into the Liaoning province, hundreds of chemical and mining companies were forced to suspend operations and 30,000 people were evacuated.
Impact of Typhoon Gaemi on Supply Chains
The typhoon’s path caused significant supply chain disruptions in East Asia, with particularly severe effects in Fujian and Zhejiang provinces. The immediate aftermath of the storm caused disruptions in transportation and logistics. Heavy rains and strong winds led to the closure of major ports and airports in Fuzhou, Quanzhou and Wenzhou. Additionally, roads and railways experienced freight delays and cancellations.
These regions are critical hubs for international shipping and trade, so disruptions are likely to have a ripple effect on global supply chains.
Supply Chain Disruptions in the Electronic Components Sector
Taiwan accounts for 92% of the world’s advanced semiconductor production and faced disruptions due to the storm. Several board-level electronic components were affected including Microcontrollers (MCU’s), Integrated Circuits (IC’s), Capacitors and Resistors, Printed Circuit Boards (PCB’s) and Memory Chips.
According to Silicon Expert, over 12,000 parts and 436 facilities are within the affected impact area of Typhoon Gaemi. Of those parts, 150 show a medium risk, possibly indicating a potential brewing shortage for those parts.
Strategies for Mitigating Future Supply Chain Disruptions
Supply chain disruptions are a constant challenge, often triggered by various factors, including natural disasters such as Typhoon Gaemi. To mitigate disruptions, it is essential to prioritize comprehensive risk assessment and management. This involves identifying potential vulnerabilities within the supply chain, evaluating their impact, and developing contingency plans. Understanding these risks allows resources to be allocated effectively and safeguards critical operations. Additionally, the diversification of suppliers is an essential strategy. Relying on multiple suppliers ensures that alternative options can maintain the flow of goods if one source is compromised. Implementing operational strategies for managing supply chain disruptions enables businesses to respond swiftly and maintain stability in the face of natural disasters.
Protect Your Supply Chain
At Microchip USA we are well-equipped to help mitigate supply chain disruptions caused by natural disasters like Typhoon Gaemi. As a trusted distributor of electronic components, we have proven experience in supply chain support and in sourcing difficult-to-find and obsolete parts. Our expert team has extensive industry experience and understands the challenges supply chain disruptions cause to businesses. By leveraging our vast network, we can locate the most obsolete components and ensure continuous access to necessary parts. Additionally, we offer supply chain support services to help manage inventory and keep operations on track even in the face of natural disasters.
