February 18, 2020
By Walt Custer

SEMI

Data through December showed a steady recovery in the global electronics supply chain with SEMI equipment leading the way in 3/12 growth (Chart 1). The global purchasing managers index moved into expansion territory (PMI>50) in January indicating accelerating growth in world manufacturing activity (Chart 2).

But in late January the Coronavirus (COVID-19) began to make its negative impact felt, snarling supply chains and shutting down factories near Wuhan, China before branching out to other electronics manufacturing centers.

The results of this pandemic are disruptions in global electronics growth with the entire supply chain scrambling to provide the needed components and finished goods to support ongoing consumer demand.