A global laptop shortage looks highly likely after new COVID prevention measures in China target a major notebook manufacturing hub
According to a report by Commercial Times, global notebook supply may soon take a hit as new COVID prevention measures in Kunshan, China, are set to limit production at major contract laptop manufacturing companies. Kunshan is a major production hub for electronics like iPhones, PCBs, display panels, and laptops.
When it comes to laptops, Kunshan is home to several laptop manufacturers including Wistron, Compal, Foxconn, Quanta, and Pegatron. These companies manufacture devices on contract from major brands like Dell, Apple, Microsoft, Lenovo, Asus, Acer, and HP, to name a few. For instance, Compal is a contract manufacturer for Apple, Lenovo, Dell, HP, etc. The anti-COVID measures will see these companies mandate work from home and implement shifts, resulting in limited production.
Aside from notebooks, Kunshan is also home to AUO, one of the world’s biggest display manufacturers. AUO designs and sells LCD panels for use in laptop screens as well as monitors. Commercial Times classifies the impact of the Kunshan COVID measures as potentially “greater than that of the closure of Shanghai.”
But the reports of severely negative effects on the supply of laptops might be a little overblown as contract notebook makers who are most likely to be affected by the measures don’t operate exclusively out of Kunshan.