The bad news returns to the IT market in general, and it is that once again China has to succumb to the contagion push that is plaguing the country by COVID-19, which is severely affecting one of its centers hubs of technology and global manufacturing: Shanghai. How long will it be stopped? world notebook production? Let’s see it.
Having a large part of the industry concentrated in certain parts of the country has a rebound effect when it comes to causes such as a highly contagious virus. China is not that they are not prepared to face COVID-19 today, but it is also not that they have done too good a job on the most important factor and now they have a problem.
An indefinite stoppage of global laptop production
We are talking about laptops because, curiously, the virus is hitting the most important factories in the sector that represent a very large part of said world production, where the rest remains in Vietnam, Taiwan and somewhat less in India. The information comes from Asian media and warns of a new series of measures that China will have to implement in that region in order to control the spread of the virus.
It must be remembered that this country manufactured its own vaccine, much less effective than the Western ones, and now they have a very serious problem with the variant. Omicron since the effectiveness was reduced to practically a third compared to the original virus version.
Therefore, there is talk of very serious damage to the global electronics industry, since China has given the go-ahead to labor movement controls, implementation of teleworking and other tougher regulations that added to energy cuts due to emissions of CO2 are literally knocking out laptop production in the Kunshan sector.
The big three fall indefinitely
Compal, Pegatron and Wistron without naming AUO or Nanya for being from other strategic sectors such as monitors or DRAMthis is the balance that the government is handling at the moment of affected companies in the environment and complexes in the area that have had to stop production.
This may not tell us much at first, but we must take into account who these three giants work for, since they manufacture for almost all the important brands worldwide, such as HP, Lenovo, ASUS, ACER, Dell, Toshiba and even Apple.
Seeing these names and after the qualification of global production stop of laptops due to serious damage, everything changes for those who were not familiar. The next move by the Chinese government will take place tomorrow, the 6th, where it is expected that after 4 days of hiatus, new, even more restrictive human and professional measures will be implemented to try to stop the blow that the virus is causing in the Asian country. , since the more than 10,000 toilets deployed do not seem to be enough.
What is clear is that the break will cause the value of laptops to rise due to speculation if it lasts too long, something to which it seems that retailers and stores have also risen, so we will have to be attentive to the variation in prices .