A new type of pneumonia outbreak, now known as Wuhan coronavirus, has taken place in China since last year. The Chinese lunar new year travel rush in the early 2020 also deteriorated the situation by causing this coronavirus epidemic to spread faster across China and the world. To slow down coronavirus outbreak within China Thus far, the Chinese government has locked down several cities such as Wuhan, Huanggan and Ezhou so factory workers are unable to resume work. “Nearly 90% of Taiwan’s IT production is currently based in China. Even though the US-China trade war has given Taiwanese companies no choice but to move some of their production bases outside of China since last year, the process has been relatively slow. Thus, 80% of the global PC supply by Taiwanese companies will likely be affected this year,” said Victor Tsan, General Director of MIC (Market Intelligence & Consulting Institute), Taipei-based government-backed IT research institute.

Production Locations of PC and Smart Device Brands in China

Source: MIC, Feburary 2020

"Even without the coronavirus outbreak, Taiwanese IT companies already have  shifted their production bases out of China due to the trade war. This epidemic is only to accelerate this trend,” Tsan added.

MIC also conducted a scenario analysis on the cross-strait coronavirus outbreak. “Our findings suggest the most likely scenario will be uncontrollable outbreaks in China but no group infections in Taiwan,” said Chris Hung, Deputy General Director of MIC.

To know more about this topic, please visit:  Impact of Wuhan Coronavirus on the Cross-Strait IT and Semiconductor Industry (pre-order), Impact of Wuhan Coronavirus Outbreak on the Global ICT Industry (pre-order)

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About MIC

Market Intelligence & Consulting Institute (MIC), based in Taipei, Taiwan, was founded in 1987. MIC is Taiwan's premier IT industry research and consulting firm providing intelligence, in-depth analysis, and strategic consulting services on global IT product and technology trends, focusing on markets and industries in Asia-Pacific. MIC is part of the Institute for Information Industry.