As Covid-19 instances increase in China, Taiwan, and Vietnam, electronics firms seeking to begin operations are expected to experience supply challenges. Notably, following March 2020, Covid-19 instances have grown in China’s industrial and export centre.
Vietnam and Taiwan are likewise in the same boat. In reality, certain smartphone players’ activities in Vietnam have been halted for two weeks. Similarly, Taiwan Semiconductor Manufacturing Company, which operates 24 hours a day, employs shift workers.
Crunch On Smartphone Industry Due To Rise In COVID-19 Cases In Manufacturing Hubs
Experts also fear that if the current scenario persists, raw material availability in India may dwindle. According to experts, India obtains 85 percent of its raw resources from these three nations.
“This tendency will strangle critical parts of the Indian smartphone market,” said Faisal Kawoosa, TechArc’s founder and research analyst. “The distribution network just was improving,” he added, “but we still have shortages in some individual components like chipsets, screens, and memory.”
Furthermore, numerous research organizations have already predicted that the second wave of Covid-19 will cause a 10% drop in smartphone shipments in 2021. Furthermore, these organizations indicate that supply constraints and the anticipated third wave may have an impact on market growth.
The ICEA anticipates that operations will be steady in June and July since China is taking steps to restrict the spread in Guangzhou, China’s export center. “Since September 2020, the worldwide sector has been hit by severe shortages, notably of semiconductors,” said Pankaj Mohindroo, head of the International Chamber of Commerce.
“Humans need not expect the situation to deteriorate in June and July 2021. China’s industrial sectors, the primary provider, are continuous and consistent “He said.
Notably, Guangzhou manufactures items for the automotive and consumer industries; however, if Covid-19 infections spread to other areas, the supply chain will suffer. Furthermore, the growth of manufacturers in Vietnam may have an influence on Apple and Samsung manufacturing.
This implies that there is a good probability that manufacturing of televisions, tablets, and phones will be hampered. However, it is important to remember that all three nations have a solid track record of managing the virus, which is why we feel it will not disrupt India’s production.
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