Demand for laptops, chips, network goods surge
SEOUL/TOKYO: With more employees working from home to help slow the spread of the coronavirus, demand is surging for laptops and network peripherals as well as components along the supply chain such as chips, as companies rush to build virtual offices. Many firms have withdrawn earnings forecasts, anticipating a drop in consumer demand and economic slump, but performance at electronics retailers and chipmakers is hinting at benefits from the shift in work culture.
Over the past month, governments and companies globally have been advising people to stay safe indoors. Over roughly the same period, South Korea—home of the world’s biggest memory chip maker, Samsung Electronics Co Ltd—on Monday reported a 20% jump in semiconductor exports.
Pointing to further demand, nearly one in three Americans have been ordered to stay home, while Italy has banned internal travel. Worldwide, the virus has infected over 300,000 people and led to almost 15,000 deaths since China first reported the outbreak in December.
“With more people working and learning from home during the outbreak, there has been rising demand for internet services ... meaning data centres need bigger pipes to carry the traffic,” said analyst Park Sung-soon at Cape Investment & Securities.
A South Korean trade ministry official said that cloud computing has boosted sales of server chips, “while an increase in telecommuting in the US and China has also been a main driver of huge server demand.”