Is Taiwan's Drought Going to Impact Computer Industry?

[Midnight Rambler]

Here's an urgent question my friend and broker (a VP of Investment for Salomon Smith Barney) posed to me this evening :



<< How important is Taiwan's worst drought in 2 decades? If water distribution
stops will the supply side crumble? Will other manufacturers pick up the
slack? Big questions lurking out there in the market, not good ... >>

 

[RanDum72]

Most Taiwanese compnaies have their major plants in mainland China.

 

[HamSupLo]

Not all manufacturing is outsourced to the mainland yet. Lots of important manufacturing facilities are located in the Hsinchu science park in Taiwan. I think that a major power outage or earthquake poses more of a threat to the tech sector in Taiwan. The government will not let the industry go dry. Too much is at stake.

 

[Bluga]

<< Most Taiwanese compnaies have their major plants in mainland China. >>



That's totally untrue. Major plants are located in Science Park in Taiwan.

 

[MadRat]

Putting China in the position to supply clean water for industry is like planting a desert in the Mojave. People tend to forget that drought is a regular occurence in China due to the geological and geographical nature of thier country. Doesn't anyone remember the massive death tolls in Chinese droughts for the last century alone!?!

Besides, Taiwan is geographically a miniscule country. If there is a drought in Taiwan then you can be sure there are droughts elsewhere in the regional area. I doubt that China can sustain manufacturing of PC parts without causing major economic hardships on its own people.