China is the world's largest consumer electronics maker. A large number of companies such as Foxconn Group and Compal Electronics have produced most of the world's electronic products such as smartphones, notebook computers, servers, network equipment, and game consoles.
However, the sudden outbreak of the new coronavirus has caused a huge impact on China's electronics industry and has also disrupted the supply of products by global consumer electronics manufacturers.
However, according to supply chain sources quoted by Tencent Tech, as some workers return to work, some companies are in the process of recovering their production capacity.
Sources said that Compal Electronics and Wistron Corporation expect that by the end of March, notebook production capacity will return to its usual low-season levels.
However, the two companies are still concerned about the tight supply of notebook parts. In addition, as the new crown virus spreads globally, consumer demand for consumer electronics products such as notebook computers may be curbed.
Sources point out that although the epidemic has spread globally, China's epidemic has recently improved, prompting various localities to actively assist local factories to resume production.
Sources said laptop OEMs such as Compal Electronics and Wistron Corporation were among the main target industries receiving local assistance.
Sources point out that currently, most laptop OEMs have recovered about 60% of their production capacity.
Compal Electronics announced that the company's consolidated revenue in February was NT $39.51 billion (US $1.3 billion), a decrease of 36.03% year-on-year, and consolidated revenue for the first two months of 2020 was NT $ 101.28 billion, a decrease of 18.64% year-on-year.
Compal Electronics noted that February was the bottom of its first-quarter operations and that its sales revenue is expected to improve in March as production line utilization rates gradually increase.
Compal Electronics delivered only 1.6 million laptops to foundry customers in February, down from 2.5 million in January, and the company will have a hard time meeting its March shipment targets.
Last March, Compal Electronics delivered 4.2 million laptops to foundry customers, but demand has been affected by changes in international trade over the past year.
Wistron Corporation previously announced that consolidated revenue for February was NT $ 44.86 billion, down 29.77% from the previous month and down 21.09% year-on-year. Consolidated revenue for the first two months was NT $ 105.35 billion, a year-on-year decrease of 20.54%.
In February, Wistron Corporation delivered 850,000 laptops, down from 1 million in January, but sales in March will return to a level similar to the same period last year, at about 1.4 million units.
In February, Wistron Corporation delivered 120,000 servers, 600,000 desktop PCs and 600,000 monitors. Shipments of the three product lines will increase sequentially in March.
However, as most component manufacturers are currently seeing less than 50% capacity recovery, Wistron Corporation remains concerned about the next component supply.
