Tech industry fears Chinese outbreak could delay supply

As a new coronavirus epidemic hits China's vast manufacturing network, affected by prolonged factory downtime and labor shortages, the world's largest technology companies are facing supply chain disruptions.

Electronics, telecommunications and semiconductor companies all rely on Chinese factories. These factories have served Western tech giants for years and have honed high efficiency. Wuhan, at the epidemic center, has been blocked by Chinese authorities, and there are many high-tech component suppliers and important transportation hubs.

As the epidemic spreads across the country, affecting manufacturing areas near Shanghai and the southern technology belt of Guangdong province, it is still uncertain whether the factories will be affected. The Shanghai government has asked companies to extend the Spring Festival holiday to February 9, and Wuhan companies will be out of business for longer. Many cities near Wuhan are blocked, and railway and airlines are suspended. Therefore, many migrant workers cannot return to these cities through long-distance transportation after returning home during the Spring Festival holiday.