Last week, Reuters reported Samsung is dealing with production issues related to the COVID-19 coronavirus outbreak. The South Korean electronics giant is facing potential manufacturing delays due to supply chain issues in Vietnam. Moreover, the corporation recently had to shut down a factory in its home country after an infected worker entered the facility.
Samsung’s COVID-19 Production Issues
On February 21, Vietnam’s Ministry of Industry and Trade warned companies operating in its borders might soon face production delays. The agency told Reuters manufacturers are dealing with constrained supplies due to COVID-19-based shipping restrictions. As such, Samsung, which is Vietnam’s largest foreign investor, may soon be unable to hit its smartphone fabrication goals.
The Ministry told the newsgathering organization that Samsung is considering alternate supply methods like air transport to service its Vietnamese factories. However, the agency also explained such efforts would not allow the company to hit its production schedule. Indeed, the South Korean conglomerate just released its well-reviewed Galaxy Z Flip handset this month. The firm also has plans to release its latest flagship, the Galaxy S10 series, on March 6.
Samsung is also dealing with coronavirus related complications in its home nation. Last Saturday, the corporation confirmed it shut down its Gumi smartphone factory after a COVID-19 positive worker entered the facility’s floor. The company put the employees who came in contact with the infected staffer on self-quarantine. In addition, the corporation shattered the factory until February 25.
Reuters noted that the scare at the Gumi is unlikely to affect the corporation’s wider operations. The facility in question produced a small number of mobile devices for the company’s domestic market. Moreover, the company’s other South Korean-based chip and handset factories have not been affected by the outbreak.
Other Tech Firms Affected by COVID-19
While Samsung is the most recent tech corporation to be affected by the COVID-19 coronavirus, it’s hardly the only one.
On February 17, The Burn-In reported Nintendo might not have enough Switch consoles for the U.S. market because of the outbreak. Though based in Japan, the games company produces its systems in China, and its supply chains have slowed down due to government-mandated production shutdowns.
Similarly, Apple recently revised down its revenue forecast for FQ2 2020 by 2 percent. The corporation said its Chinese suppliers had encountered difficulties keeping their facility staffed as a result of COVID-19 infection anxieties.
Besides, Apple product assembler Foxconn is dealing with coronavirus related production delays. Because of the outbreak, the corporation has begun installing enhanced air ventilation systems in its employee dormitories and cafeterias. Consequently, the company’s assembly operations have suffered.
The Information also notes Foxconn’s Shenzhen-based iPhone component manufacturing plants are only functioning at 60 percent capacity.
Furthermore, Chinese e-commerce giant Alibaba has dubbed the coronavirus manufacturing disruption a “black swan event.” The firm said the unanticipated and deleterious situation had harmed its manufacturing and delivery operations. Moreover, a Beijing initiated fee reduction stimulus program might cost the corporation as much as $593 million in the current quarter.
Electric car maker Tesla has also sustained had problems as a result of the COVID-19 outbreak. Earlier this month, the manufacturer confirmed that the epidemic could have a “material adverse impact” on its business of it continues to spread. Indeed, the carmaker already had to temporarily shutter its recently opened Shanghai-based Gigafactory 3 as a part of a government mandate to halt the spread of the disease.