Earlier this week, The Burn-In reported how the coronavirus has impacted components makers in Asia, Europe, and the United States. In brief, companies that base their production capacity in China have suffered significant production and delivery delays.
Now, Reuters reports that the Indian government is working to help its local electronics and smartphone producers by airlifting in Sino-made parts.
New Delhi’s Efforts to Mitigate the Coronavirus Impact
To slow the spread of COVID-19, the Chinese government mandated a temporary suspension of manufacturing. Although Sino factories are once again ramping up production, the region’s supply chain is still not back to full capacity.
Reuters notes truck driver and port worker shortages, and an increase in ground checkpoints have caused delays in the Chinese supply chain.
As India is China’s largest trade partner, the lack of parts flowing into the country is a serious problem. Last week, New Delhi addressed the issue by asking electronic device and handset makers to create lists of in-demand Sino components that can be brought in by air freight.
Specifically, Indian government officials are looking to airlift in essential parts from Guangzhou and Shanghai.
A Pressing Need
At present, the Southeast Asian republic’s federal technology ministry hasn’t outlined a schedule for its component air shipments. But India’s smartphone and device manufacturers have a pressing need for a logistics solution.
The nation’s electronics producers created parts stockpiles ahead of the Lunar New Year holiday celebrations. However, delays in the Chinese supply chain are causing local manufacturers to burn through their excess inventory. S.N. Rai, co-founder of Indian mobile phone company Lava, said Chinese shipment slowdowns are on the verge of causing production problems at his firm’s New Delhi factory.
“The period between March 10 and March 20 is going to be very tough,” the executive told Reuters. “In the absence of supplies, we might have to cut one or two of the three eight-hour shifts we have daily.”
Wistron Corp and Flex Ltd., two multinational electronics manufacturers with facilities in India, have reached out to New Delhi for help. The two companies reportedly asked government officials to help them secure camera modules and displays from China. The Automotive Component Manufacturers Association of India has also asked for federal help in securing Sino-manufactured electronics parts, including pressure sensors.
With the WHO (World Health Organization) officially declaring the coronavirus a pandemic as of yesterday, other governments and manufacturers will need to become just as creative as India if they want to maintain their supply chains.