Coronavirus Continues to Impact Global Tech industry performance

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Since the outbreak of the coronavirus, which was renamed much later as COVID-19, many businesses all over the world have been affected one way or the other

The raging outbreak of coronavirus has led to the inevitable shortage of manpower due to resignation in high-risk areas to restriction on transportation, all of these things have taken its toll on businesses and the economy at large.

Recently, Market intelligence firm TrendForce, looked into the Global high-tech industry to measure the effect of the coronavirus outbreak otherwise known as the COVID-19 outbreak. According to their report, if compared to other sectors, the semiconductor sector was not seriously affected by the outbreak; this is major thanks to its comparatively higher degree of automation.

Scanning further to fab operators, they found that many employees come from out of town and this could impact fab utilization badly, due to traffic and labor restrictions. As a result, TrendForce said it is forecasting a possible decline in shipments for the Chinese foundry industry in the first quarter that could have an impact downstream.

On the other hand, it’s a little bit gloomy in the display industry. Panel makers are maintaining maximum water input for front-end displays, TrendForce said, but black force module houses, downstream brands, and original design manufacturers are faced with problems arising from labor shortages and transportation limitations. As such, Tv set shipments are expected to fall from a previous prediction of 48.8 million units in the quarter to 46.6 million units. Similarly, monitor shipments are forecasted to drop from a projected 29million down to 27.5 million units.

IC design shouldn’t be impacted due to the fact that many people now work remotely and can easily work together via the cloud.

Sadly, one of the industries taking the hardest toll is the consumer smartphone industry. This is owing to the fact that the supply chain is highly labor-intensive. TrendForce said that production during the quarter is expected to decline by 12 percent year-over-year, making it the quarter with the lowest output in the last five years. This decline would most likely continue if the outbreak is not contained before the end of February

Manufacturers of game consoles like Sony and Microsoft have hardly been brushed by this epidemic infection. If the outbreak is successfully contained before the end of March, the industry should be able to make up for any losses being incurred now.

 

 

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