The coronavirus outbreak is definitely having short-term impacts on the supply chain in China. The memory sector was heading for recovery before the outbreak, with prices on the rise. Now memory prices are likely to rise at a slower pace as clients in China are more reluctant to fill their stocks. For Taiwanese ASIC vendors, shipments in first-quarter 2020 may be affected by the outbreak, but their clients in China have assured them that overall orders will remain significant. In the notebook maket, global shipments are expected to drop in the first quarter of 2020, according to Digitimes Research.
Memory prices to rise at slower pace: Memory chip prices are likely to rise at a slower pace in February, as buyers in China are holding a wait-and-see approach, according to industry observers.
Taiwan ASIC makers see little impact on China orders despite outbreak: Taiwan-based ASIC solution suppliers have to delay postpone shipments to Chinese clients in the meantime amid the coronavirus outbreak, but their longer-term orders from China will remain unaffected, as clients there will continue to reduce reliance on US suppliers of vital IC components, according to industry sources.
Digitimes Research: Global notebook shipments to decline in 1Q20: Global notebook shipments were weaker-than-expected in the fourth quarter of 2019 due to Intel's ongoing CPU shortages and major brands stopping stocking extra inventory in the wake of easing US-China trade tensions. However, annual shipments in 2019 still grew 4.1% on year, according to Digitimes Research's notebook tracker.
