NEWS
NEWS
Teehon led supply chain and production has been in normal status in March
08-03-2020
The recent Coronavirus outbreak has made great influence on the supply chain in the LED industry covering from led chip packaging production to end market led lights manufacture.
LED wafer and chip supply is less impacted by the epidemic and delay production because it still has high inventory due to oversupply in 2019. However, materials for LED chips such as sapphire substrate and other might be not enough if the work delay continues. So it is anticipated that LED chip price will increase after March 2020.
Compared to LED chip makers, LED packaging factories are more affected because their production is based on much labor work and most of the factories are located in Guangdong and Jiangxi province with most of the workers coming from all over China. If workers still cannot resume working soon, the lack of labor power will delay the mass production soon. Besides, the lower inventory level of LED package products will lead to urge needs for restart of production .
For end market products, Hubei province, where the coronavirus outbreak began, one of the vehicle production center in China has been heavily hit by the epidemic. It is still hard to estimate the production restarting date, the lack of components will hinder automobile manufacture, resulting in impacts on automotive LED lights.
Panel and backlight module production are also suffering from lack of materials due to postponed production. Production rate of panel would be lower if materials supply does not recover soon. Also, the rising coronavirus cases in South Korea might also delay the panel production there.A mobile panel factory of LG Display in South Korea has been closed for quarantine due to a confirmed case in the factory.
Luckily, in addition to our sufficient stocks of materials and aluminum housings in our warehouse before Chinese lunar new year, nearly all of suppliers in souther China had resumed normal production at the start of march, we expect that our supply chain will return to normal level in the middle of this month.Except two workers who come from Hubei province has not come back to our factory this month because of their local transporation restrictions, all of our other workers has restarted mass production for any new order this month. We are confident that we will meet any agreed lead time for new orders we hae concluded.
LED wafer and chip supply is less impacted by the epidemic and delay production because it still has high inventory due to oversupply in 2019. However, materials for LED chips such as sapphire substrate and other might be not enough if the work delay continues. So it is anticipated that LED chip price will increase after March 2020.
Compared to LED chip makers, LED packaging factories are more affected because their production is based on much labor work and most of the factories are located in Guangdong and Jiangxi province with most of the workers coming from all over China. If workers still cannot resume working soon, the lack of labor power will delay the mass production soon. Besides, the lower inventory level of LED package products will lead to urge needs for restart of production .
For end market products, Hubei province, where the coronavirus outbreak began, one of the vehicle production center in China has been heavily hit by the epidemic. It is still hard to estimate the production restarting date, the lack of components will hinder automobile manufacture, resulting in impacts on automotive LED lights.
Panel and backlight module production are also suffering from lack of materials due to postponed production. Production rate of panel would be lower if materials supply does not recover soon. Also, the rising coronavirus cases in South Korea might also delay the panel production there.A mobile panel factory of LG Display in South Korea has been closed for quarantine due to a confirmed case in the factory.
Luckily, in addition to our sufficient stocks of materials and aluminum housings in our warehouse before Chinese lunar new year, nearly all of suppliers in souther China had resumed normal production at the start of march, we expect that our supply chain will return to normal level in the middle of this month.Except two workers who come from Hubei province has not come back to our factory this month because of their local transporation restrictions, all of our other workers has restarted mass production for any new order this month. We are confident that we will meet any agreed lead time for new orders we hae concluded.
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