PCB resumes work, the industrys most difficult period has passed
The PCB industry estimates that the resumption rate of factories outside Hubei is about 50% to 80%. The worst situation in mainland China has passed. With the recovery rate recovering, operations will improve in the second quarter, but the market is worried that the production end is resolved and the epidemic has spread to European and American countries. Instead, it affects the needs of the terminal.
The pneumonia epidemic in Wuhan once closed or closed the management of more than 80 cities in mainland China, which caused difficulties in transportation, logistics, warehousing and retail. According to market observations, Chinese factories have resumed work, but it is difficult to return to normal levels in a short time. Lack of materials, production and labor, downstream inability to ship, and other people are worried about the flow of goods.
Apple recently warned that the slower than expected resumption of the supply chain will cause a global shortage of iPhone supplies and the fear of a decline in retail demand in mainland China. Financial estimates for the second quarter of fiscal 2020 may not meet the standards.
The printed circuit board (PCB) is regarded as the mother of the 3C industry by the market. About 63% of the output value of Taiwan's circuit board factories is produced in mainland China, and 35% is produced in Taiwan. The production bases in mainland China are mainly concentrated in Jiangsu Province and Guangdong Province. Other provinces include Hubei (Huangshi, Xiantao), Chongqing, Sichuan, Liaoning Estuary, and Qinhuangdao, Hebei.
According to PCB industry sources, some manufacturers' iPhone-related high-end products are produced in Taiwan, but there are too many components for a mobile phone, and it is still unknown whether production will be affected. However, optimistic about Apple's brand power and large orders, if Market shortages will be easier to resolve than other brands.
In view of the fact that the current rate of return to work has not yet reached a normal state, industry insiders said that except for a small number of people who are "not able to come back", most of the problems are stuck in "returning to be isolated first", and then giving priority to the large factory, which will naturally be compressed to the small factory. Some small local factories may be a part of the supply of components. The interlocking will affect the results of resumption of work, but the market is optimistic that the domestic can resume normal production as scheduled in April.
Another industry source estimates that factories outside Hubei, China, according to the isolation and rework situation, the return rate is about 50% to 80%, thinking that it is only a matter of time for mainland China's production to return to normal levels, "the worst of the mainland has passed." However, the market is worried that the spread of the epidemic to Europe and the United States will affect the problem on the demand side, and the subsequent hidden concerns have not been completely resolved.