The chief executive of Power Integrations, Balu Balakrishnan (above right, at the opening of a packaging plant in Malaysia) has highlighted the risks of the coronavirus outbreak in China. The outbreak may reduce the number of staff available to make end products, and the demand for them.
“As far as the coronavirus goes, it's still happening in real time so we don't have a very good understanding of what the full impact would be,” said Balu Balakrishnan, President and CEO of Power Integrations. “Our Chinese vendors who do the packaging assembly and test for us, they are saying that they will be only shut down in one case for one additional week that is next week. The other two suppliers they are going to be up and running as of next Monday, but not the full rate because they don't have all of the employees coming back."
“But to the best we can determine at this point, our ability to supply will not be limited unless this shutdown continues for a longer period of time. What is harder to predict is whether the demand will change because our customers can't either get other components or they don't get enough production workers coming to work to build the products. That's something we are unable to predict at this time,” he said.
“Because it is still the Chinese holiday is there they won't come back until Monday is whether there is any impact on the demand itself. And there could be multiple reasons, one is that they don't get enough production workers to build products. That's our customers I'm talking about."