Chinese manufacturers uncertain about impact of coronavirus

Posted on Friday, Feb 07 2020 @ 18:57 CET by Thomas De Maesschalck
DigiTimes writes work in China is supposed to resume starting February 10 after an extended Lunar New Year holiday. However, no one is really sure about how much production output there will be due to the coronavirus outbreak. Manufacturers in the high-tech supply chain believe production will resume at levels below normal due to labor and material shortages:
For many parts of China, work is supposed to resume starting February 10 after an extended Lunar New Year break in the wake of the coronavirus outbreak, but manufacturers generally do not believe their production can return to normal levels. Materials and labor shortages will be a major problem due to local governments' tight control of transportation. The chairman of panel maker AUO says the display supply chain braces for major impacts if the epidemic cannot be contained soon. Taiwan-based passive components makers have aleady been asked by their clients to raise their production outside the epidemic-hit China.
The article also highlights that the display supply chain expects a bit hit. Prices of LCD displays will likely go up due to shortages.

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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.

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