Business interruption drives largest semiconductor losses, Crawford & Company says
Crawford & Company says business interruption often drives the largest semiconductor losses, with production shortfalls potentially emerging months after an incident. Fabrication plants can cost more than $10 billion, and wafers take three to four months to manufacture.
1. Interruption risks
Crawford & Company's analysis says business interruption often drives the largest semiconductor losses, with production shortfalls potentially emerging months after an incident. Fabrication plants often cost more than $10 billion, and contamination can disrupt production even when equipment appears intact. Wafers take three to four months to manufacture, leaving work-in-progress inventory at risk of scrapping. High utilization limits recovery of lost production, while reduced yields can prolong financial losses beyond physical repairs. The analysis also says Asia's concentration of semiconductor manufacturing exposes insurers to natural catastrophe losses across facilities, suppliers and customers in multiple countries.
