Lower laptop production expected due to coronavirus

Posted on Wednesday, Feb 05 2020 @ 14:21 CET by Thomas De Maesschalck
While the health impact of the novel coronavirus seems to be limited, the economic impact is getting bigger and bigger by the day. DigiTimes the tech supply chain is starting to feel the impact. Many factories are expected to resume production next week or in mid-February, but there's a lot of uncertainty about how much production there will be. In particular, DigiTimes heard from notebook ODMs that their utilization rate is expected to be only 50-70 percent. A lot depends on how many workers stay at home, and how much the supply of components and materials will be impacted by the outbreak:
The coronavirus outbreak in China has widespread impacts on the ICT supply chain. Although many makers are supposed to resume production in China next week or in mid-February if no further complications occur, they cannot tell how normal their operations will be. Notebook ODMs estimate their utilization rates will be 50-70%, depending on the numbers of workers able or willing to return to work and material supply conditions. Companies in other sectors face the similar uncertianties and China-based panel makers, including BOE, CSOT and Tianma, who have fabs in Wuhan - the epicenter of the outbreak - could fare worse. For the mobile device market, the first year for the 5G era got off to a really bad start. Demand for 5G smartphones is likely to be hit by the outbreak, which in turn will dampen sales of mobile DRAM.

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

Loading Comments