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Industry news

New coronavirus is blocking the development of global electronic industry

Time:2020-03-04 Views:470
In order to contain the epidemic, the Chinese government extended the Spring Festival holiday and delayed the resumption of work. As many manufacturing enterprises around the world choose to manufacture products and purchase components in China, although the epidemic situation in China has been controlled, epidemic prevention measures have affected the global supply chain
The outbreak of new coronavirus in China has affected the electronic industry. According to a new analysis released by IDC, China‘s smartphone sales will fall by more than 30% in the first quarter of this year. And canalys‘ survey estimates that "technology providers seem to have suspended marketing campaigns and are unlikely to focus on launching new products, including 5g phones." It will take time for suppliers to adjust their product plans for sales in the Chinese market, which could reduce the total number of 5g handsets launched in 2020.
S & P global also estimated the impact of the coronavirus epidemic on the global economy. "The speed and spread of the epidemic over the past two months pose a threat to the global economy and credit," the rating agency said According to the agency, China‘s economy will slow down and GDP growth is expected to fall from 5.7% to 5%. This will have an impact of 0.3% on global GDP in 2020.
To contain the outbreak, the Chinese government extended the Spring Festival holiday and delayed opening of offices and factories. However, these measures, as well as isolation measures, have an impact on the global supply chain, as many companies around the world produce in China or buy components made in Asian countries.
In manufacturing, many companies conduct targeted health checks on workplaces at risk of virus transmission, and then selectively reopen them. The company must abide by a series of rules set by the government, especially the appropriate isolation area must be set to isolate anyone who needs to be isolated.
Moreover, the world mobile communication conference (MWC) was cancelled. GSMA issued the following statement: "considering the safety and health environment of Barcelona and the host country, GSMA decided to cancel the 2020 world mobile communication conference scheduled to be held in Barcelona. The outbreak of the novel coronavirus has attracted global attention, and travel risk and other causes led to the cancellation of the GSMA conference.
The semicon meeting in South Korea and the semicon meeting in China were also cancelled. The International Annual Conference on solid state circuits (ISSCC) was largely unaffected and was still held in the United States from February 16 to 20 as scheduled, but a few paper speakers were unable to attend due to travel restrictions.
Reactions from companies
I contacted a number of companies and asked them for their opinions on the outbreak and how they would respond to it. "We have not found any substantial impact of the new coronavirus on our supply chain," said Fabio Violante, CEO of Arduino. Like most companies in the electronics industry, in many cases we rely on components provided by Chinese factories, so there may be a shortage in the future. Some supply chain network distributors have reminded us that there may be a little delay in the supply of components, but we believe that it will not have a substantial impact on our delivery. We will continue to pay attention to the situation and take appropriate measures to mitigate the impact. "
Infineon has a sales office in Wuhan and its business activities have been reduced to close.
A spokesman for Infineon said: "at present, Infineon employees have not been infected with any cases. In the event of similar symptoms, we will advise employees to stay at home and keep in touch with our medical services department for further assistance. "
"Infineon has been closely following the development of the new coronavirus epidemic, especially in Hubei Province of China," he continued. The safety of our employees and business partners is our top priority. Infineon has developed detailed guidance for access to affected areas. "
"Infineon has no production facilities or partners in Hubei Province," the spokesman concluded. If government restrictions and air transportation restrictions have an impact on our supply chain and may result in delivery delays, we will work closely with affected customers to mitigate the impact. "
EPC is a leading supplier of Gan power management technology, but its technology and products are not limited to improving power conversion efficiency.
"The Chinese market has slowed down significantly," said Alex lidow, CEO of the company. The Lunar New Year holiday has been extended for a full week and the supply chain has been disrupted. We all want to end all danger and isolation as soon as possible, but no one can predict. "
Lidow continued, "we do have some customers cancelling orders and some supply shortages, but they are not serious enough. We are still waiting to see if things will get worse? Is the supply chain affordable? So far, we feel that the supply chain is adapting to this situation. We don‘t have any manufacturing plants in China, and our Chinese distributors have enough inventory. "
Maxim stated in an editorial note: "maxim will participate in the embedded world in Nuremberg, Germany, from February 25 to 27, 2020 as planned.". However, novel coronavirus will also be closely monitored, because the protection of employees is the first. If there is any indication of a serious risk, we will take appropriate measures. "
Microchip announced that it would not participate in the 2020 embedded world exhibition. "Novel coronavirus is a major threat to the health environment and the uncertainty of the new coronavirus epidemic situation," its press release said.
Advantech also released a press release in response to the current outbreak of the new coronavirus. With nearly 8000 employees around the world, Advantech has not found any cases of infection so far. Its employees in mainland China are close to 3400 (including direct and indirect employment), most of which are located in manufacturing centers in Kunshan, Suzhou, while the rest are located in multiple cities, including Beijing, Shanghai, Shenzhen, Guangzhou, Xi‘an and Chengdu.
"At present, no one is infected with Advantech employees, and many employees in China will continue to work at home," the press release said. The safety and health of our employees is our top priority. Kunshan manufacturing center (akmc) is expected to resume some production (30%) in late February. The manufacturing centers of Advantech in Kunshan and Taiwan undertake all product manufacturing, and each manufacturing center accounts for about half of the capacity of Advantech. Among them, the manufacturing center in Japan mainly focuses on customized demand services (CTOs). Manufacturing centers in Taiwan and Japan are operating normally. "
Power integrations is a silicon valley based supplier of high-performance electronic components for high-voltage power conversion systems. Doug Bailey, vice president of marketing, said: "we expect a brief disruption in China‘s end-user demand and material supply chain in China. But it is expected that the epidemic control work will be successful at the right time, and there will be no permanent negative impact except for those unfortunate people who are directly affected by the disease. "
Doug continued: "we are more willing to plan ahead for possible risks, which is why we have multiple locations for Fab and package production. Product delivery is not expected to be affected. We have sub assembly manufacturers in China and they are still in operation. Our stock is outside China, and there are assembly plants outside China, which can manufacture the same products. It is not expected that the products offered to customers will have any impact. "
Component distributors such as arrow and mouser are also paying close attention to the development of the epidemic. Airy electronics and its team have been in contact with local heads to ensure appropriate action is taken in a timely manner. At present, the Chinese government has restricted the flow of people into and out of Wuhan.
"Airy‘s business continuity plan adopts a strict structured approach. We assess the impact of major events on employee health and safety, assets, and key process workflows around the world by establishing, maintaining and continuously developing a continuity plan and implementing necessary continuous contingency plans," an airy spokesman said
The spokesman concluded that "due to the continuation of the coronavirus epidemic, we are monitoring its development on a global scale. Our Asia Pacific operations team has taken action to ensure that the right people work with our transport partners to develop contingency plans to ensure the integrity of the supply chain. As our priority is always to ensure the safety of our employees, we reopened our business in Beijing, Shanghai and Shandong on February 10, and in Hangzhou, Xiamen and Northeast China on February 17, as instructed by the Chinese government. At present, there are limited delays and extended delivery times for products made in China. We will continue to work closely with our suppliers to continuously monitor any impact on the supply chain. "
Mark burr lonnon, vice president of global services and senior sales of tradeze electronics, said, "up to now, all the manufacturers we have cooperated with have confirmed that their production will not be affected by any impact, but as the situation changes, the supply may change, and we believe that there will be more accurate prediction and judgment gradually."
He continued: "it is certain that this period will be a very challenging one, and the longer the virus spreads, the wider the spread and the greater the impact, thus preventing the flow of people and transport. In order to prevent any goods entering the company from being infected, according to who‘s recommendation, our goods will also be quarantined for 7 days from the date of shipment.
On February 11, the associazione distretti elettronica meeting was held as usual, at which the trend of Italian semiconductor and subsystem market was analyzed. Assodel is a member of the International Association of electronic distributors (idea). In view of the novel coronavirus giving warning and the uncertainty of its production, the chairman of the association Mauriti Maitti urged nearly 50 managers present to provide the latest information.
The overall feeling is positive. Some manufacturers of semiconductors, PCBs and connectors in China have tried to reduce their production in China, saying that although they are not yet operating at full capacity, the production line has been restarted and delivery time is expected to be extended for up to a few weeks. Some large distributors have also confirmed that, according to the reports to date, there is no need to worry about the situation of their suppliers.
During the meeting, they also took into account another uncertainty, that is, some well-known information, such as the closure of some European ports or restrictions on merchant ships from China, and the ban on flights with Italy, which is not only related to the production of parts and components but also related to logistics, which has greatly affected the logistics and freight transport.
After the meeting, I interviewed Diego Giordani, director of Tecno. "As you know, it looks like the situation is under control, but we have to monitor the situation carefully," he said. At the suggestion of chairman maitti, we have established a weekly inspection mechanism to monitor assodel members. We had a meeting with the top management of idea on February 20. The chairman of the meeting was Georg Steinberger. At the meeting, you analyzed the international situation. "
Giordani continued: "I‘ve heard that some Italian companies are also assessing the" impact "of the market, and I‘m sure they are monitoring every day on a product by product basis to identify any potential risks. Some of them have confirmed that some products will remain in Italy or Europe even after the crisis. They have yet to assess the impact this situation will have on the final price. For those enterprises with manufacturing facilities in China, the Chinese government requires them to establish isolation zones for their employees and ensure all necessary medical and health measures. And those who work at home remain at home. "
epilogue
As the epidemic crisis is not over yet, it is too early to analyze the medium and long-term consequences. We will continue to wait and see what happens in the next few weeks to understand the actual scope of the epidemic and its economic and geographical consequences.
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