The unrelenting spread of the coronavirus is endangering global electronics supply chains, raising the possibility that planned 5G wireless deployments could be at risk.

1. 2/14/2020 Coronavirus Seen Slowing 5G Deployments
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Coronavirus Seen Slowing 5G Deployments
February 13, 2020 by George Leopold
The unrelenting spread of the coronavirus
is endangering global electronics supply
chains, raising the possibility that planned
5G wireless deployments could be at risk.
The rollout of key components such as
next-generation 5G New Radio has begun.
Global availability remains limited, analysts
note, and could be slowed further if the
virus forces key electronics manufacturers
in China to slow production. For now, the
supply of semiconductors destined for 5G
devices remains steady, according to
market tracker Omdia.
“If coronavirus continues to spread and spur significant public health problems in China, electronics
manufacturers in the country may be forced to slow manufacturing or even shut down some operations,” Omdia
warned this week. “This could have a significant impact on global semiconductor supply.”
The threat of production shutdowns in China is especially worrisome given global dependence on 5G leaders
like Huawei for next-generation wireless infrastructure such as base stations and 5G radio access network
equipment. Prior to the coronavirus outbreak, market analysts were forecasting a $21 billion market for 5G
networking gear by 2024.
Those estimates have now been tempered by disruptions to the global electronics supply chain caused by the
epidemic.
“If there is a deceleration in manufacturing within China, it is likely to not only impact chip suppliers but also
companies that purchase large volumes of chips to produce end products,” including providers of electronic
manufacturing services and original design manufacturers, Omdia warned.
An early indicator of 5G supply chain disruptions is the current decline in display manufacturing. Analysts
estimate display manufacturing will decline by as much as 25 percent during February as component shortages
begin to bite. Display manufacturing resumed on Feb. 3 after the government extended the Lunar New Year
holiday, but travel restrictions have slowed the return of workers.
Another disruption to the 5G rollout occurred this week with cancellation of Mobile World Congress, the largest
global wireless trade show that was scheduled for the end of February.
Other market trackers view the coronavirus as a potential use case for 5G technology. Analysts note that the
expansion of bandwidth capacity on 5G networks could be used for remote health care applications.
“Remote healthcare requires real-time, high-quality video conferencing among other things, which today
generally requires wired networks,” Frost & Sullivan notes. “While this use case is often discussed to improve
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2. 2/14/2020 Coronavirus Seen Slowing 5G Deployments
https://www.enterpriseai.news/2020/02/13/coronavirus-seen-slowing-5g-deployments/ 2/2
rural healthcare, an epidemic such as COVID-19 illustrates another [instance] when doctors and their patients
may be remote from each other.”
Given current travel restrictions across China, “doctors may be able to treat a larger number of patients
remotely,” the analyst said.
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Categories: Edge/IOT, Healthcare, Networks, Silicon, Slider: Edge/IOT, Slider: Networks, Slider: Silicon
TAGS: 5G, base stations, coronavirus, COVID-19, huawei, semiconductors, wireless networks
About the author: George Leopold
George Leopold has written about science and technology for more than 30 years, focusing on
electronics and aerospace technology. He previously served as executive editor of Electronic
Engineering Times. Leopold is the author of "Calculated Risk: The Supersonic Life and Times of Gus
Grissom" (Purdue University Press, 2016).
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