TAIPEI, Taiwan -- UMC Group here said today that it has completed its initial appraisal of the damages caused by last week's earthquake that struck Taiwan and concluded that damages were significantly less severe than originally estimated.
Power at UMC Group has been restored, and 90% of the machinery in UMC Group's fabs have already returned to production. The silicon foundry company said it expects to return to full capacity production in a few days and to meet extremely strong demand from its customer.
Based on its initial investigation, all of the fab installations and equipment are in good condition, the company said. However, some damage was caused to some materials, such as quartz furnace tubes, required for the operation of some equipment. UMC has allocated $10 million to replace these materials, most of which have already been installed and are being used in production now.
As a result of the power loss associated with the earthquake, UMC Group said it expects its overall monthly revenues will drop by as much as 25% for the month of September, or approximately $45 million. However, since UMC Group has insurance coverage for natural disasters and the interruption of business operations, the actual financial loss will be below that, the foundry said.