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Some U.S. companies are increasing the size of their purchase orders for goods from Chinese manufacturers in an attempt to get moved up the line amid production backlogs, he added. Others are trying to diversify to factories outside China in countries such as Vietnam.
Overall, there are more than 3,500 facilities owned by large companies that make semis and consumer electronics and are located in quarantined areas globally, according to Resilinc, a Milpitas, California-based supply chain research firm.
Michael Yang, an analyst at Omdia, said that with many Chinese workers off the job for a week to 10 days in late February, it meant that production was essentially curtailed for almost a month. “For that one month, from talking to suppliers and manufacturers of devices, they have been in a holding pattern and waiting to get production online,” he said in an interview.
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