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Intel was forced to close a chip packaging plant in Chengdu, after a devastating earthquake erupted 60 miles away bringing down telephone lines, power and water in the Chinese

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city.

The company says it is currently conducting a "seismic" assessment and expects employees to return to work on Friday. None of them were harmed in the incident.

"While the current situation is dynamic, we hope to resume operations as soon as possible pending the completion of a seismic assessment of our facilities and restoration of infrastructure in the region," a statement from the company reads.

Quanta Computer and Compal Electronics, which supply around 60% of the world's laptops, say they are awaiting an official response from Intel on how badly supplies will be hit, though the chip manufacturer says it will wait for the assessment to be completed before giving a definite answer.

However, according to reports the company has already contacted Advanced Semiconductor Engineering (ASE), Amkor and Siliconware in order to avoid serious shortages.