'Everybody's holding their breath': Coronavirus concerns about the global tech supply chain have reversed — with recovering Asian suppliers now worried about US demand
The tech industry's supply chain has been disrupted by the coronavirus crisis.
But now concern is shifting from US companies being worried about their manufacturing partners to those partners being alarmed about the potential for an economic downturn in the US and a sharp decline in demand, Berkowitz said.A week ago, the big question about the tech industry's supply chain was how long it was going to take manufacturers in China to get back to full production after the coronavirus outbreak idled factories there.
Production in China was halted initially during the Lunar New Year celebrations in January. But factories stayed shut as the government there attempted to contain the COVID-19 outbreak.Some factories, particularly those owned by the Taiwanese contract manufacturing giants, were starting to come back online earlier this month, Berkowitz told Business Insider last week. But few were at anything close to full production.
Even as they do resume production, many are well behind schedule, Berkowitz said. Components and other products are significantly backlogged.
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