Production of electronic goods in the territory of China is currently experiencing difficulties. Not only smartphones , the production of television and laptop screens are also said to face obstacles. This is due to the spread of the corona virus outbreak there.
Market research firm, IHS Markit, said that in the Wuhan region, which was the first time the corona virus was discovered, there were at least five large factories producing screen panels. LCD and OLED display panels are used to produce televisions, laptops, and a number of other electronic devices.
The Chinese government is calling for workers to stay at home, making factory conditions more difficult. With the loss of human resources, the electronic factory’s production process automatically stops completely. “Factories in China are experiencing labor shortages and several important components,” said David Hsieh as IHS Markit Senior Director.
Summarized from PCMagazine, Monday (02/03/2020), IHS Markit also said that a number of large component suppliers in China will experience a decline in production in the near future.
In the Wuhan area, there are at least two screen factories owned by TCL . TCL itself is known as a 4K television brand which is priced cheaply. Then the other two display factories belong to Tianma which manufactures LCD panels for Asus. The reduced supply of screen components is also said to have an impact on the price of the panel.
IHS Markit said, if panel price increases typically range from 1 US dollar to 2 US dollars, then the price increase due to this corona virus can reach 3 US dollars to 5 US dollars. The recent spread of the corona virus in China has forced a number of leading technology companies to temporarily close their factories and shops.
Google for example. They were forced to temporarily close their four offices in China, as well as in Hong Kong and Taiwan, following the outbreak of the corona virus outbreak.
The closure of the two Google offices began before the Chinese New Year holidays, but was extended because of regulations from the local Chinese government.
Google has also issued a ban on business trips to countries in China. In addition, employees who are currently traveling outside China are asked to continue working from home for at least 14 days after their departure date. Foxconn and Samsung too.
Foxconn itself is known as an Apple cellphone assembler. The two electronics companies also closed their factories in the region adjacent to Wuhan. In addition, Facebook, Razer and LG also issued a ban on flying for employees who want to visit China.