TrendForce has revealed the negative impact from coronavirus outbreak on the global renewable energy industry.
In terms of the upstream substrate, chip to downstream packaging sector, because the number of LED manufacturers in Wuhan and Hubei core affected areas is limited, only a few manufacturers affected; the LED manufacturers in other parts of China were constrained by the slow pace of the resumption of work, and they may be unable to return to full production in the short term.
Overall, the LED industry has been oversupplied since 2019, and there has been inventory for sale, so the short-term impact will be small. The medium to long term will depend on the condition of resumption of work.
In addition, the LED packaging industry chain is mainly distributed in Guangdong Province and Jiangxi Province. Although they are not the center of the epidemic, because their manpower demand is large and most of the employees come from the expatriate population all over China, if the medium- and long-term problem of labor shortages is not resolved, the impact will be more severe. As for the demand side, various operators have begun to stock up orders in advance and increase the inventory level, thus pushing up a wave of stock demand. Each production link will decide whether to raise the price in response according to each supply status.
# Lithium-Ion Batteries
In terms of the main lithium-ion battery applications, the production of power battery cell and non-battery cell components diversifies and mostly comes from Japan, Korea and the US, which was less affected by the outbreak in China. For IT applications, the industry chain is highly concentrated in China, so they have been most affected by the outbreak so far.