Many component factories in South Asia continue to be affected by government-mandated work and travel restrictions as a result of the COVID-19 pandemic.
The Philippine government has issued an enhanced community quarantine over Luzon from March 18 through April 12, 2020. Many of the component factories in the area have either shut down or significantly reduced capacity. As an example, manufacturer Cypress has announced their factory capacity will decrease by 70 percent.
Moreover, the logistic networks into and out of the Philippines have been directly impacted by this order, as well. We expect reduced airfreight capacity and extended transit delays if this situation continues.
Similar movement control measures have been taken by Malaysia, Vietnam, Thailand and Indonesia since last week. Many factory facilities located in these countries are shut down or have temporary suspended operation for at least 14 days.
We encourage our customers to contact our account team with your forecasts and demands for the next six months. Once we have this information, we can discuss options to mitigate the impact on your business. Then we will be able to give our supply chain as much notice as possible to allocate material and capacity for your product.
We will continue to communicate with you throughout this critical situation. Your supply chain safety will always be our priority.