The coronavirus epidemic is likely to have a negative impact on general markets, especially consumer markets. Global GDP is going to take at least a minor hit.
The coronavirus outbreak in China is already affecting electronics industry business. A new analysis published by IDC predicts a drop in smartphone sales in China of more than 30% in the January-March quarter. Canalys Researchers estimated that “Technology vendors are likely to pause marketing activities; they are unlikely to focus on launching new products, including 5G devices. “It will take vendors time to change their roadmap for product launches in China, and this will probably decrease the number of 5G smartphones distributed in 2020.
S&P Global has estimated the impact of the coronavirus epidemic on the global economy. “The speed and spread in the last two months pose a risk to the global economy and credit,” said the rating agency, which estimates that the slowdown in China, whose gross domestic product (GDP) forecast has been reduced from 5.7 to 5 percent, will impact 0.3 percent of global gross domestic product in 2020.
In an attempt to contain the epidemic, the Beijing government has extended the Chinese New Year holidays, leaving offices and factories closed for longer. But these measures, combined with quarantines, are having an impact on the global supply chain as most companies around the world manufacture in China or buy components manufactured in the Asian country.
For manufacturing industries, many companies are reopening selectively after performing a targeted health check where the workplace could be a risk of virus spread. The company must comply with a series of instructions established by the government: in particular, they must dedicate a corporate quarantine area of people for every need.
Not least, the cancellation of the Mobile World Congress. The GSMA released the following statement: “With due regard to the safe and healthy environment in Barcelona and the host country today, the GSMA has canceled MWC Barcelona 2020 because the global concern regarding the coronavirus outbreak, travel concern and other circumstances, make it impossible for the GSMA to hold the event.”
Semicon Korea and Semicon China had already been canceled. ISSCC, being held here this week, is relatively unaffected, though a handful of presenters were unable to attend due to travel restrictions.
What the companies say
I reached out to some companies to get their comments and how they are dealing with this epidemic. “We haven’t seen any tangible impact from the Coronavirus on our supply chain,” said Fabio Violante, Arduino’s CEO. “Like the majority of companies in the electronics world,” Fabio continued, “we depend on components that, in many cases, are supplied by Chinese factories, hence we may expect some shortages in the future. We have received some advisory notes from distributors in the supply chain about potential minor slowdowns in supply, but we believe they will not substantially affect our ability to deliver. We will continue monitoring the situation and we are putting in place providing some countermeasures to mitigate the effects.”
Infineon maintains a sales office in Wuhan, where business activities are reduced to a minimum.
“Currently, we are not aware of any infections among Infineon employees. If symptoms should occur, employees are advised to stay at home and contact our medical service for further assistance,” an Infineon spokesman said.
“Infineon is closely following the development of corona infections,” he continued, “especially in the Hubei region of China. The safety of our employees and business partners is our top priority. Infineon, therefore has comprehensive guidelines regulating travel to and from the affected regions.”
“Infineon does not own production facility or a production partner in the Hubei province. Where restrictions by the authorities and airfreight limitations may have an impact to our supply chain and may result in delays of deliveries, we will be in contact with affected customers to mitigate any impacts,” the spokesman concluded.....MUCH MORE
EPC is the leading provider of gallium nitride (GaN)-based power management technology and is doing more than just improving the efficiency of electrical power.
Alex Lidow, CEO at EPC, said “The markets have considerably slowed down in China. The Chinese New Year holiday was extended a full week, and supply chains are disrupted. We are all hopeful for a quick ending of all the dangers and quarantines, but nobody is willing to make a prediction.“....
