According to local Chinese media reports, affected by the novel coronavirus epidemic, production resume dates for factories in mainland China have been postponed after the New Year holiday. In addition, the Chinese government requires manufacturers to take certain virus prevention and control measures to resume work. These affected factories include passive component manufacturers such as Murata, Yageo, Walsin and Uniohm.

Recently, the supply chain provided reports on the resumption of production dates for some passive component factories located in mainland China, as shown in the figure below.

Coronavirus impacts production of passive components in the short term-SemiMedia

According to the above figure, some production sites of passive component manufacturers have resumed operations, but because some production line workers have not returned to their posts, the overall production capacity has dropped from normal levels. In addition, as these producers have many production sites throughout China, in addition to the above-mentioned resuming sites, there are still other sites under review, and the local government has not yet approved the resumption.

According to earlier reports, due to the imbalance of demand and capacity utilization, passive components are expected to be in short supply again this year. An industry insider said that coupled with the impact of viruses on resuming production, the capacity of passive components may be insufficient in the short term, and market instability may increase.