Taiwanese PCB makers with factories in China are suffering the ill effects of the factory closures and labor shortages due to the COVID-19 coronavirus, scurrying to find alternate ways to keep up with demand. To do so, they are migrating their production capacity elsewhere. However, it seems that the transition isn't going fast enough, as Digitimes reports that the Taiwanese PCB makers have been 'urged to accelerate capacity relocation.'
It's no surprise that this is happening, either. Up until recently, inventories in various industries have lasted, but with the labor shortages in China it's becoming increasingly difficult for manufacturers to keep up with the global economies.
Although many factories are now allowed to remain open under strict regulation, the labor shortage remains a problem due to the travel restrictions and large number of individuals and families under quarantine.
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With China contributing a significant chunk of PCB manufacturing to the global market, a reduction in output will lead to ripple effects throughout the industry. With the reduced supply of PCBs, manufacturers further down the supply chain won't be able to complete fabrication, consequently reducing the output of products to the market.