Air traffic suspension has limited impact on Taiwan handset industry Tweet

The suspension of air traffic in Europe has had limited impact on Taiwan's handset manufacturing industry and domestic market.

Taiwan-produced handset components for customers in Europe are shipped to assembly plants outside of Europe, said industry sources, adding that the limited shipments to Europe are mostly transported by sea, and hence the air traffic stoppage has had little impact thus far.

HTC also said that it has seen limited impact from the interruptions, but has begun to more closely examine shipments and inventories worldwide. Europe accounts for 30% of HTC's revenues, and shipments to the continent are mostly via air.

In Taiwan's domestic market, Europe-based handset companies pointed out that most of their shipments to Taiwan are produced in China, South Korea and Singapore. Diversified manufacturing sources has allowed them to avoid regional risks such as the volcanic eruptions in Iceland.

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