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Coronavirus Interrupts China’s Tech Supply Chains

The coronavirus outbreak has placed China’s vast technology supply chain at risk as many of the component makers are situated in or near Hubei city, which has been placed in lockdown.

Authorities in China are taking steps to reduce the mass migration of workers back to factories after the Chinese lunar new year holiday to reduce the risk of infection.

In Suzhou, a tech hub north-west of Shanghai, businesses have been barred from resuming operations before February 8. The Central Government has also extended the holiday by three days until February 2.

Tech companies such as Alibaba, Tencent and Baidu have all told their staff to work from home for an extended period.

Apple’s plans to increase its iPhone production in China this year could also be affected. The US company has asked Chinese suppliers to make up to 80 million iPhones in the first half of this year, up from 10 percent from last year’s production schedule.

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