Coronavirus in China affecting the global tech sector: S&P

By VARINDIA - 2020-02-14

Coronavirus in China affecting the global tech sector: S&P

S&P Global Ratings has said that the coronavirus outbreak in China is disrupting the global technology sector as operations in the tech manufacturing hub are threatened. In China the virus outbreak has claimed 1,115 lives while the confirmed cases of infection jumped to 48,206.



The epi-centre of the deadly coronavirus, the Hubei province of China has reported a record 242 new fatalities and nearly 15,000 fresh cases in a single day as per local health officials. An Asia economist of S&P Global Ratings marked that the base case is that 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. S&P said it has not taken any rating actions related to the outbreak.



This especially affects hardware, electronic manufacturing services providers, and semiconductor companies. If the outbreak proves more difficult to contain, the effect on the tech sector could be extensive as lengthy factory shutdowns or significant underutilisation could materially lower the global output of tech components, subassemblies, or finished goods.


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