Highlights of the day: China takes anti-virus steps ahead of massive holiday migration

Makers in China usually have to reduce output during the Lunar New Year holiday. But they may have to reduce production earlier than usual for the upcoming holidays that officially start in February, as local government authorities are forcing migrant workers to go home early, advancing the period of massive migration for family reunions to reduce risks of COVID-19 infections. Notebook makers who expect orders from clients to remain robust during first-quarter 2021 are offering extra bonuses for workers willing to continue working during the upcoming holidays. The notebook ODMs want to make sure they have enough output during the holidays to fulfill clients' demand, but short supply of components, apart from labor shortage, may hinder their production. Components shortages have also been constraining the supply of SSDs although the market for NAND flash remains oversupplied.

China labor shortage to worsen amid anti-virus measures ahead of holidays: Due to the approaching Lunar New Year holidays, some cities in China have introduced new precautionary measures to prevent a possible resurge of the coronavirus pandemic, which may worsen labor shortages in the country in January-February, according to industry sources.

Notebook suppliers to keep more workers during upcoming holidays in China: As clients' notebook orders for the first quarter of 2021 are expected to remain strong, many in China's notebook upstream supply chain are set to offer extra bonuses to persuade workers to continue working during the Lunar New Year holidays in Fenruary 2021, according to industry sources.

SSD supply constrained by chip shortages: The market for NAND flash memory remains oversupplied, but shortages of flash device controllers and passive components have constrained the supply of SSD and other related peripherals, according to industry sources.

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