ASSESSMENTS
The Coronavirus Spreads Fears of a Shutdown in China's Tech Sector
Feb 7, 2020 | 10:00 GMT
(KEVIN FRAYER/Getty Images)
Highlights
- At present, the new coronavirus will not have a huge effect on China's technology sector beyond the temporary extension of the Lunar New Year holiday, since Wuhan and Hubei province are not a critical node in the country's overall technology sector.
- Nevertheless, the virus will have an impact on Wuhan's fiber optics industry, which is among the world's largest and accounts for a fifth of China's capacity in the sector.
- A lengthy crisis in Wuhan could also delay China's gradual attempts to improve its 3D NAND memory chip manufacturing capabilities as the city is a focal point of domestic investment in the area.
- If authorities fail to contain the outbreak to Wuhan and it starts to impact neighboring provinces like Shaanxi and Henan, or Yangtze River Basin areas like Shanghai, Jiangsu and Zhejiang, the impact could be devastating.
Subscribe Now
SubscribeAlready have an account?