Coronavirus to affect electronic supply chains, 5G: Page 3 of 5

February 14, 2020 //By Omdia
Coronavirus to affect electronic supply chains, 5G
The spread of coronavirus is impacting diverse and interconnected sectors of the electronics industry, potentially dirupting 5G deployment.

Display production slashed in February

In a new update from February 11, Omdia’s Displays service estimates that utilization at China’s display fabs utilization will decline by 20 percent to 25 percent in February. However, the country’s production and output will drop 40 percent to 50 percent due to component shortages.

Manufacturing of display panels used in products including 5G smartphones has been significantly impacted by the coronavirus epidemic, with suppliers contending with both labor and component shortages.

After closing for the government-extended Lunar New Year holiday, most display panel makers with manufacturing operations in Wuhan and elsewhere in China resumed operations starting on February 3. However, numerous employees and workers remain unable to return to their workplaces because of travel restrictions in China, reports.

LCD polarizers and LCD module printed circuit boards (PCBs) are now in a state of shortage due to the production bottleneck and also because of logistics issues. Panel makers are dealing with low inventory for polarizers. This issue is persisting even after the resumption of production at most facilities.

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