On the 29th January, we advised that the Chinese New Year had been extended, this period has now ended and factories in China returned to work on the 10th February, so far, our supply chain has advised;
- All factories must apply for a licence to operate to ensure measures are in place to prevent further spread of the Coronavirus (2019-nCoV). Many factories have been granted these licences and have re-opened.
- But due to the quarantine process in place in many provinces, the workforce is not yet at full strength, with many reporting, they are currently operating at 50% to 60% of the normal workforce.
- Due to the quarantine policies in place restricting the movement of the workforce, factories are likely to operate on a reduced workforce for February and possibly into March.
- Factories are focusing their efforts on late, due or unconfirmed orders initially.
- With lead times on new orders likely to increase as a result.
What does this mean for the availability of PCBs and components?
EMS does not solely source PCBs from China, but also from the UK and Europe, therefore if lead times in China do increase, we will with our suppliers be able to find a solution for any option from quick turn to normal production orders to support our customers.
The most immediate short-term impact is likely to be PCB supply, with medium to long term impact possible on the supply of components, depending upon the location of factories and how long factories may operate at reduced capacity.
If you have any questions concerning this statement, then please contact your Sales Representative who will be happy to help.