Mumbai5 hours ago
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- The biggest infection ever recorded since March 2020 in Guangzhou, China
- These three countries have a good record of controlling corona virus.
India’s electronics manufacturers could face severe supply shortages with China, Vietnam and Taiwan affected by the new wave of COVID-19. Guangzhou, which is considered China’s manufacturing and export hub and center of economic production, has recorded the biggest infection since March 2020.
New cases in Vietnam and Taiwan
Vietnam and Taiwan are also seeing an increase in new cases of Kovid. In fact, the operations of Samsung Electronics and Apple suppliers Foxconn and Luxshare were suspended in Vietnam for two weeks in May. Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest chipmaker that runs round the clock, has prepared a plan for workers to work in shifts.
If the situation does not come under control, the supply of raw materials will stop.
Experts said that India’s raw material supply will decline sharply in June if the situation in these overseas hubs is not brought under control soon. This decline will come when the consumer sentiment is on its way to revive here. India gets more than 85% of the components required for phone assembly from these three countries. The new transition phase in these countries will disrupt the supply of critical parts for the smartphone industry in India.
things got worse again
As the supply chain was improving, things started deteriorating again. The outlook for smartphone shipments this year has been downgraded by at least 10% due to the second Covid wave. Analysts said the third wave could further hurt India’s market growth due to lack of supply. However, some experts believe that operations should remain stable in June and July as China has so far been successful in containing the spread in Guangzhou.
Since September 2020, the global industry is facing a shortage especially in semiconductors. The situation does not appear to be deteriorating in June and July 2021. China’s main source manufacturing operation is normal and strong. “Guangzhou is more focused on the automotive and consumer segments. But experts have warned that if the corona infection spreads to major mobile markets such as Shanghai or Beijing, it could create supply chain disruptions.
Vietnam is mainly dominated by Samsung and Apple whose products like phones, televisions and tabs remain in demand. Their supply chain will be affected. Poor preparation and lack of vaccination planning will take a toll on Vietnam’s manufacturing industry.
Huge shortage of vaccinations in Vietnam
In Vietnam, barely 1% of its total population has been vaccinated and the road ahead doesn’t look very promising. These three countries have a good record of controlling the virus. Samsung has a good backup in India and from here the shortfall in production in Vietnam can be compensated.