China lockdown: Notebook production halved due to lack of parts

The ongoing lockdown measures at important locations of the electronics industry in China are currently causing a massive reduction in production capacity for notebooks and other PCs. It is said that some contract manufacturers have almost halved the number of units.

Because a rigorous “lockdown” is still being enforced in the Kunshan region, i.e. people are only allowed to leave their homes in absolutely exceptional cases, industrial production is also at a standstill in many places. Kunshan is particularly important for suppliers to the PC industry, who have mechanical components made of plastic and metal manufactured there. This is exactly what the industry is missing now, so that the construction of finished laptops is being slowed down considerably.

Especially high-end devices are affected by the consequences of the lockdown because there is a lack of high-precision parts from Kunshan. The contract manufacturers of the well-known notebook brands HP, Acer, Asus and Dell based in the cities of Chongqing and Chengdu can therefore not continue their production as usual and have greatly reduced the number of active production lines, according to the Taiwanese industry service DigiTimes.

capacities halved

As a result, capacities have currently fallen by 40 to 50 percent, which ultimately leads to bottlenecks in the availability of the devices. Even if the lockdown measures in Kunshan and Shanghai are ended in the coming days, it will take two to four weeks before production can be ramped up again to normal levels.

At the moment, however, the chances are not good, because the lockdown that has been in force in Kunshan since the beginning of April will probably continue at least this week. However, the number of infections in the region has recently been significantly lower than in Shanghai, for example, so that the prospects of a gradual “opening” are better. The curfews also ensure that the employees of the PC industry are currently not receiving any wages, since the contract manufacturers cannot transfer the salaries because the banks are also closed, it is said.

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