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Coronavirus Impacts on The Global Manufacturers Due to Countries Lockdown
As the Coronavirus continues to spread, some countries are putting their citizens on lockdown. China, Hong Kong, Denmark, El Salvador, France, Ireland, Italy, New Zealand, Poland, Spain, United States, Malaysia, and the Philippines have implemented the world’s largest and most restrictive mass quarantines. More than 120,000 people have died and over 1,900,000 have been confirmed to be infected by the Coronavirus worldwide as of April 13, 2020.
Wuhan, China, has been locked down for more than six weeks, and many other cities still face travel restrictions. Factories across the U.S., Asia and Europe have cut output and jobs at the fastest pace since the global crisis began. This is a sign that the global economy has entered a deep freeze as governments lock down their populations to contain the novel Coronavirus and minimize mortality. The novel Coronavirus is laying bare a central problem for the global manufacturing industry: China’s shadow has grown so long that even industries that have shifted production beyond the country cannot wriggle free of its grip on supply networks.
China:
At the end of January, China’s Hubei province went into lockdown to slow the spread of the outbreak. Good news, some companies are now resuming their operations.
Download the full supplier impact list
Italy:
The Italian government has ordered on March 23 all ‘non-essential’ businesses to close as a part of the fight to contain Italy’s coronavirus crisis.By this decision, all industries will be locked until at least April 3 except the necessary businesses like Pharmaceuticals, Food, Transport, Accommodation, Newspapers.On April 2, 2020, the Italian government has extended the closure of all non-essential production activities until 13 April 2020.These are some companies which are impacted by Coronavirus pandemic disruption in Italy:
- Sira Sistemi Radio
- Fiat Chrysler Automobiles
- Apple
- Rolex
- Ferrari
- Yamaha Motor Europe
- Lamborghini
Check out this link for more details about Italian companies and their statements http://download.siliconexpert.com/pdfs2/2020/4/12/20/58/21/422838/memse_/manual/italy_coronavirus_report..pdf
Malaysia:
On March 18, the Malaysian government issued a nationwide Movement Control Order MCO effective for the remainder of the month of March as a preventive measure towards COVID-19 spread. The control order mandates the closure of all government and private premises except those involved with national essential services.
The Malaysian government has granted an exemption for the Electronics & Electrical sector, including semiconductors, to continue operations. To enforce the restriction of gatherings and events, all houses of worship and business premises were ordered to close. Remaining in operation, are essential services such as water, electricity, energy, telecommunications, transport, oil, petrol, safety, and defense.
On Friday, April 10, Malaysia extended its lockdown by two weeks through April 28 as the country continues to see daily triple-digit increases in new coronavirus cases.
These are some companies which shut down due to the Malaysian Lockdown order:
- KOA Speer Electronics
- CTS
- igus
- Murata Power Solutions
- Western Digital
- SAFRAN Group
- Samtec
- Epson America, Inc
- Porex Corporation
- Renesas Electronics
- NichiconAvery Dennison
These are some companies that have Exemptions from lockdown orders:
- OSRAM Opto Semiconductors
- ROHM Semiconductor
- Broadcom
- Maxim Integrated.
Philippines:
The Philippine government announced enhanced community quarantine effective March 17th through April 13th. Details include 24-hour quarantine for Luzon island, along with Manila. Mass transportation systems have been suspended, work from home enforced and only essential businesses are to remain open.
These are some companies which shut down due to the Philippines Lockdown order:
- SANYO DENKI
- Japan Aviation Electronics Industry
- Yamaichi Electronics
- Adesto Technologies Corporation, Inc
- NIPPON CERAMIC
- Molex
These are some companies that have Exemptions from lockdown orders:
- Molex
- ROHM Semiconductor
- Maxim Integrated
India:
On March 22, the local Indian government announced that “All enterprises in the manufacturing sector would close down all forms of its operations with immediate effect”. This order includes manufacturers in most locations of India like Pune, Indiana, Bangalore, Gandhinagar, and other areas
These are some companies shut down due to the India Lockdown order:
- Molex
- Kennametal Inc
- Chase Corporation
- Samsung Electronics
- igus
- SAFRAN Group
- Boyd Corporation
- Western Digital Amphenol
- Mahindra & Mahindra Ltd
- Bajaj Auto
- LG Electronics
- Tata Motors
- Hyundai Motor Company
- Panasonic
United States:
The United States is also facing a lot of challenges due to COVID-19 outbreak. Many states and counties across the USA have issued orders that restrict the movement of people and close businesses that are considered to be non-essential.
New York:
In New York, Governor Andrew Cuomo’s rules were ordered to start Sunday, March 22, at 8 p.m. This order required non-essential business workers to stay home. Some companies that have been impacted by the restrictions related to COVID-19 including Solid State Cooling Systems. The company announced: “Based on the latest New York State Executive orders and our status as a supplier to ‘Essential Businesses’, on the week of March 30th we will begin to reopen our facilities with minimal staffing”.
California:
On March 19, the Governor of California issued a Shelter in Place order for the entire state of California to avoid the spread of COVID-19.The impacted companies by this Shelter in Place order were:
- Infineon
- Delta Electronics
- Analog Devices
Texas:
On March 31, 2020, Texas Governor Greg Abbott issued an Executive Order implementing Essential Services and Activities Protocols for the state of Texas. The order requires anyone who is not considered an essential critical infrastructure worker to stay home. This exception is based on the Department of Homeland Security’s Guidance on the Essential Critical Infrastructure Workforce.Some companies have been impacted by this order. Venkel LTD is considered part of the Critical Manufacturing Sector and therefore remains fully operational.
New Jersey:
In New Jersey, Governor Phil Murphy announced statewide restrictions on March 17. He also required the closure of non-essential businesses by 9 p.m. the same day.Some companies have been considered essential manufacturers. These include Dranetz-BMI, RAB LIGHTING, UNICORP, USA TOLERANCE RINGS, TRC Electronics.Companies that have been closed in New Jersey include Penn Elcom.
Mexico:
The Federal Government of Mexico has declared a Health Emergency by Force Majeure, 30 March – 30 April 2020.Some of the impacted companies by this order are as follows:
- West Coast Magnetics
- Ideal Vacuum Products, LLC
- TE Connectivity
- Amphenol
Japan:
To prevent further outbreak of the coronavirus and in response to the government policy and other situations, some companies have been closed, including Panasonic. Panasonic Center OSAKA will remain closed until May 6.
Germany:
Germany has imposed temporary controls on its borders with France, Switzerland, Austria, Denmark, and Luxembourg as of Monday, March 20 to stop coronavirus spreading.Porex Corporation has announced that it suffers from labor shortage due to this border control and has stated: “Our Bautzen facility in Germany is experiencing a labor shortage due to the government limiting the cross-border movement. While the facility is still operational, the labor shortage is causing some deliveries to be delayed.”
Hong Kong:
After the Coronavirus pandemic first appeared, Hong Kong announced a travel ban and lockdown on non-essential businesses till February 3. Shortly thereafter, the provincial government extended this ban until February 15.Hong Kong is extending its travel ban for non-residents as it keeps up its efforts to control the outbreak. This travel ban also extends the suspension of transit flights until further notice, which has been a devastating blow to its main carrier, Cathay Pacific. The Chinese special administrative region has seen a surge of coronavirus infections in the city.Some of Hong Kong Companies that have resumed their operations are Chip One Stop, Inc, SECO S.p.A.
South Korea:
South Korea’s government said on Wednesday, April 8 that it will increase restrictions on people traveling from overseas to prevent new coronavirus infections and announced new stimulus measures for exporters hit by the outbreak.Korean companies that have been impacted by COVID-19 include:
- Samsung Electronics
- LG Electronics
- SK hynix Inc
Spain:
The Spanish government has tightened up its national lockdown, ordering all non-essential workers are to stay at home for the next two weeks to halt the spread of the coronavirus and relieve pressure on the country’s overstretched hospitals. Prime Minister, Pedro Sánchez, announced on Saturday the halt of all non-essential activities starting on Monday, March 30, until Thursday, April 9, both inclusive.Companies that have closed their plants in Spain include:
- Siemens Gamesa
- Vestas
- LM Wind Power
Companies that have resumed their Operations include HMS Networks, Airbus Corporation
Pennsylvania:
On March 17, the Governor of Pennsylvania announced a statewide shut down of non-essential businesses to contain the spread of COVID-19.Based on this order, most companies have been closed, but some considered essential manufacturers like Stockwell Elastomerics can remain open.
Taiwan Success Story:
Despite being only 110 miles from China and having experienced its first case on January 21. Taiwan has only 388 cases (as of April 13).When the first news about a mysterious illness started emerging in December 2019, Taiwan treated the news with utmost urgency.
There are many hundreds of thousands of Taiwanese working in China, which means there is a high frequency of flights and travelers between the two countries. Taiwan took measures early on, including inspecting flight passengers flying in and out from December 31 and implemented strict travel policies to tourists and visitors.
The government also took control of face mask distribution from the private sector on January 31, ensuring there would be no hoarding of supplies or exploitative pricing. Taiwan also implemented a purchasing policy on February 6: every Taiwanese can only buy a certain amount of adult and children’s masks per week from pharmacies and clinics for NT$5 ($0.17) each. To prevent long lines outside clinics, Taiwanese can now order their masks online and pick them up at a later date.
Taiwan shows that countries need to be proactive and take multiple measures they deem necessary. It is already too late for some to contain the coronavirus, but they can still focus on public education, making use of technology, and maintaining control of vital supplies such as masks and other medical equipment.
For more details about suppliers, Manufacturers statements related to COVID-19, download SiliconExpert’s full report below:
Download Full Supplier Impact Report
References:
https://www.businessinsider.my/countries-on-lockdown-coronavirus-italy-2020-3
https://foreignpolicy.com/2020/03/16/taiwan-china-fear-coronavirus-success/
https://www.thelocal.it/20200323/businesses-that-can-stay-open-under-italy-latest-quarantine-rules
https://www.coronavirus.gov.hk/eng/index.html#Updates_on_COVID-19_Situation Hong Kong
https://foreignpolicy.com/2020/03/16/taiwan-china-fear-coronavirus-success/
April 13, 2020, by Ahmed Sabry and SiliconExpert’s R&D team
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