SLOW TO RETURN: Analysts said that most plants would not return to full capacity this month, while S&P Global revised upward its GDP growth projection for Taiwan next year

Taipei Times
Date: Mar 02, 2020
By: Chen Cheng-hui  /  Staff reporter

Electronic manufacturing service providers and electronic component suppliers with significant operations in China would be the hardest hit in Taiwan by the effects of an outbreak of COVID-19 in China should the virus prove more difficult to contain, Taiwan Ratings Corp (中華信評) said.

Taiwanese electronics manufacturing service providers include Hon Hai Precision Industry Co (鴻海精密) and Pegatron Corp (和碩), which are major iPhone assemblers for Apple Inc and have a significant presence in China, which is also an important production base for Taiwanese electronic component makers, who are already affected by shut factories and travel restrictions in China.

“These companies could also face labor shortages and logistical difficulties even after the resumption of operations,” Taiwan Ratings said in a report on Wednesday.

The adverse effects would extend to shortages in raw materials and key components for manufacturing facilities, the local arm of Standard & Poor’s (S&P) Global Ratings said.
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