Expansion of production in the Czech Republic as insurance against coronavirus

Expansion of production in the Czech Republic as insurance against coronavirus

Due to the coronavirus epidemic raging in China, according to DIGITIMES, problems in the supply of server components and servers can already appear in March.

China is still the main manufacturer of server components such as cables, chassis, and printed circuit boards. And the stability of the supply processes of all these components will be seriously threatened if the outbreak of the coronavirus will not be suppressed.

Some amount of safe time is given by the fact that most vendors made substantial stocks before the Chinese New Year and due to these stocks they plan to wait out possible short-term outages with new supplies.

But besides the short-term perspective, it is necessary to think about long-term planning.

Inventec, a major manufacturer of server motherboards, for example, is planning to increase its production capacity in Taiwan, Mexico and, to work with customers in Europe, in the Czech Republic.

Additionally, removing production capacities from China activities were already stimulated some time ago by US sanctions, which caused increased fees for Chinese servers. In order to avoid these fees, many manufacturers organized the assembly of server equipment in other countries, continuing to receive components from China. However, now this opportunity has been threatened.

If you depend on regular deliveries of server hardware and you have a warehouse, maybe now is the time to start replenishing it so that you can safely wait out the crisis.

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