Ongoing Lockdowns in China Threaten Disruptions in Global Electronics Supply Chain

Lockdowns underway in China to control the spread of COVID-19 are raising the specter of significant disruptions in the global supply chain for electronic components and consumer electronics, according to analysis by Omdia. Major cities in China are implementing restrictive measures to halt the spread of COVID-19 under the country’s “zero COVID-19” policy. In the lockdown areas, city residents are under orders to stay in their homes. Many major manufacturers of essential electric components and car parts are located in the lockdown regions, and several factories in the regions have shut down because they are unable to recruit workers from outside the cities to keep the plants operating. In some factories, employees have stayed and continued production. But with lockdowns continuing for extended periods, and even expanding into neighboring cities, the procurement of components to feed factory lines has been disrupted.