Epidemic rebound in Southeast Asia, poor economy, factory closures may affect global supply chain
Jim
Sunny Worldwide Logistics
2021-05-22 18:10:27
As the number of newly confirmed cases of new crown pneumonia in several Southeast Asian countries has increased significantly, Richard Martin, managing director of the Asian region of IMA, a British investment management company, believes that the outbreak of the new crown epidemic in several major manufacturing centers in Asia may have an impact Global supply chain. While the number of people infected with the new crown has increased sharply in Southeast Asian countries, the demand for commodities from the world's two largest economies-the United States and China-has also promoted the real "rapid rise" in the ex-factory prices of industrial products in Southeast Asia. Recently, some media reported that due to the aggravation of the new crown pneumonia epidemic in northern Vietnam, Apple's supply chain Foxconn and Luxshare Precision have suspended production at their factories in northern Vietnam in accordance with local government requirements. Malaysia is also an important exporter of semiconductors and rubber gloves, accounting for 8% of the global semiconductor back-end packaging market, and entered the national lockdown again last week.
Foxconn and Luxshare Precision are in shutdown On May 19, the relevant person in charge of the Secretary-General’s Office of Luxshare Precision stated that Luxshare Precision’s overseas layout is mainly based in Vietnam, while the factories in Vietnam are mainly located in Bac Ninh and Bac Giang provinces. It is in shutdown state. According to documents on the official website of the Bac Giang Provincial Government of Vietnam, the administrative order to suspend the closure of factories this time involves factories in four industrial parks. Foxconn and Luxshare Precision have established production facilities in the Van Trung and Quang Chau industrial parks. Foxconn responded that some of the group's subsidiaries cooperated with the local government's overall anti-epidemic policy in the Beijiang area of Vietnam. Since May 18. In addition, other plants are maintained in operation.
Major General Ding, the founder of Ding Technology, said that if the relevant factories cannot resume production after two weeks, it will put a lot of pressure on Apple's already-scarce global production capacity. Luxshare Precision produces AirPods series products in Vietnam, while Foxconn produces display panels and TVs in Vietnam. Regarding the impact of the relevant plant shutdowns, the relevant person in charge of Foxconn said that the park has strengthened epidemic prevention measures, taking the safety of employees as the highest principle, and complying with the local government's epidemic prevention measures. The epidemic has little impact on the company's operations in Vietnam. Apple foundries suffered successive setbacks
Affected by the epidemic, it is not the first time that Apple's industrial chain has suffered a setback in production in foreign factories. According to reports, in addition to affecting Foxconn and Luxshare's factories in Vietnam, the new crown pneumonia epidemic is also affecting Foxconn and another Apple supplier, Wistron, in India. Last week, foreign media reported that Foxconn's factories in India were hit hard by the new crown pneumonia epidemic. A source said that more than 100 Foxconn employees in the worst-hit Indian state of Tamil Nadu have tested positive for the new crown virus. According to two sources, the company's factory in Chennai (the capital of Tamil Nadu), which produces iPhones specifically for India, has been cut by more than 50%. In addition, the source also said that due to the fact that workers infected with the new crown virus had to leave their jobs, the output of Apple's iPhone 12 at Foxconn's India factory has dropped by more than 50%. In early May, 10 Chinese engineers at its Chennai plant were infected with the new crown virus.
Entering the national blockade again, Malaysia’s two major industries may affect the world Malaysia, which entered the national lockdown again last week, is also an important semiconductor exporter, occupying an 8% share of the global semiconductor back-end packaging market, especially in the world's leading position in microelectronics assembly, packaging and testing. According to statistics from the data company Statista, Malaysia occupies 8% of the global semiconductor back-end packaging market, and Penang has contributed 80% of it. It is a world leader in microelectronics assembly, packaging and testing. Malaysian Semiconductor Industry Association (MSIA) Chairman Datuk Seri Wong Siew Hai said that although the world is actively investing to increase production capacity, the global chip shortage will not be solved overnight. It is worth noting that Malaysia is also the world's largest producer of rubber gloves, and the demand for this anti-epidemic material has skyrocketed during the new crown epidemic. In the export market, Malaysia's main competitors are Thailand and China.
It is worth noting that Malaysia is also the world's largest producer of rubber gloves, and the demand for this anti-epidemic material has skyrocketed during the new crown epidemic. In the export market, Malaysia's main competitors are Thailand and China. In March of this year, the Malaysian Rubber Glove Manufacturers Association (MARGMA) stated that the current delivery time for gloves is about 7 months. Until the second quarter of 2022, demand will remain strong. Malaysia will supply 280 billion of them, accounting for 67% of the total global supply. The Ministry of Health of Malaysia reported on May 19 that as of 12 o'clock that day, there were 6,075 new confirmed cases of new coronary pneumonia in the country in the past 24 hours. This is the first time that Malaysia has more than 6,000 new confirmed cases in a single day since the epidemic. Malaysian Prime Minister Muhyiddin announced on the 10th that due to the increase in new coronary pneumonia cases, the country will implement a nationwide blockade from May 12 to June 7. The total number of cases in the country currently exceeds 440,000.
