Business interruption drives largest semiconductor losses, Crawford & Company says

By Public Technologies
  • Crawford & Company's analysis finds business interruption often drives the largest semiconductor losses, with production shortfalls potentially emerging months after an incident.
  • Fabrication plants often cost more than USD 10 billion, yet contamination can disrupt production even when equipment appears intact.
  • Wafers take three to four months to manufacture, leaving substantial work-in-progress inventory at risk of scrapping during interruptions.
  • High utilization limits recovery of lost production, while reduced yields can prolong financial losses beyond completion of physical repairs.
  • Asia's semiconductor manufacturing concentration exposes insurers to natural catastrophe losses spanning facilities, suppliers and customers across multiple countries.


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