Coronavirus Outbreak Unsettles The Global Technology Sector

Publish Date: 13 Feb, 2020 11:27 AM   |   Madhurima  

CHENNAI: The life-threatening coronavirus epidemic from China has convulsed the worldwide tech sector, which includes hardware, semiconductor companies, electronic manufacturing service providers and so on. Due to the outbreak the operation in world's largest tech manufacturer, which is China has been disrupted, as per the reports of S&P (Standard and Poor's).

In a report "Coronavirus A Wide-Ranging Ill For Tech Supply Chain", S&P said it expects the virus will be contained globally in March 2020 (no new transmissions in April), allowing travel and other restrictions to be unwound by the middle of the second quarter.

According to the report, the factories are expected to reopen in February and the near term negative impact to the technology sector can be reversed later.

"However, if the outbreak proves more difficult to contain, the effect on the tech sector could be extensive as lengthy factory shutdowns or significant underutilization could materially lower the global output of tech components, sub-assemblies, or finished goods," S&P statement said.

"We haven't taken any rating actions related to the outbreak, S&P Global Ratings analysists David T. Tsui, Raymond Hsu, and Mark Habib said in the report.