“These companies could also face labor shortages and logistical difficulties even after the resumption of operations,” Taiwan Ratings said in a report on Wednesday. The adverse effects would extend to shortages in raw materials and key components for manufacturing facilities, the local arm of Standard & Poor’s (S&P) Global Ratings said. The Chinese government is also likely to assist key industries, including the technology sector, to maintain normal operations and minimize the economic effects of the coronavirus outbreak, it said. Taiwan Ratings said that the degree of risk facing Taiwanese companies varied by industry. “We expect more tech companies to diversify their reliance on China as a manufacturing hub and introduce reshoring plans or shift production to other countries in Asia,” Taiwan Ratings said.

Source: Taipei Times March 01, 2020 15:56 UTC