TPC Electronic Industry

Coronavirus (COVID-19) Impact Survey

June 2020
 TPC Electronic Industry COVID-19 Impact Survey
Survey Date: May 29-June 5 Respondents: ~6700 Location: Worldwide/China focus (~85% China) Who: Active Electronics Industry Professionals

As a follow up to our ongoing research on the impact to the electronics supply chain in China from the Coronavirus
(COVID-19); we did our 4th special survey. The survey had ~6700 respondents with ~85% located in China. Our key
findings along with our supporting on the ground checks are as follows:

• Only 28% of the respondents are seeing an incremental negative impact over the past 4 weeks to demand
and/or production from the virus; vs. 31% last month and 48% in March.
• Roughly 85% of the respondents see production down only 5% or less for C2Q due to the virus’ impact.
• Now 37% think the production shortfall in C1Q will be made up in C2Q while 59% believe it will be made up in
C3Q.
• Less than 1% are saying the production shortfall will never be fully made up vs. 15% in the April survey.
• Regarding the C2Q shortfall, ~7% (vs. 14% previously) of these responses believe there will not be enough
workers back by C2Q to make up the C1Q production deficit; while ~35% (vs. 37% in April & 47% in March)
believe there will not be enough components available in C2Q to make up the shortfall.
• Now 63% (vs. 58% in March & 37% in April) of the respondents see 5% or less demand destruction; while only
7% see >10% demand destruction (vs. 10% in April & 24% in March).
• The weighted average of this survey’s demand destruction due to COVID-19 is ~4-5% vs. ~5-6% in the April
survey and ~7-8% in the March survey.

June 2020 COVID-19 Impact

TPC Proprietary 2
Survey
 Have you seen any additional negative impact to component demand
and/or production due to COVID-19 over the last 4 weeks?

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
Feb Mar Apr May
Yes No

June 2020 COVID-19

TPC Proprietary 3
Impact Survey
 What % of C2Q’s electronics production do you think this will
impact vs. previous plans?

60% Apr, 57%

50%
May, 45%
Mar, 43% May, 42%
40%
Mar, 36%
% Respondents

Apr, 34%

30%

20%
Mar, 14%
May, 11%
10% Mar, 7% Apr, 6%
Apr, 3% May, 2%
0%
No Impact Down 1-5% Down 6-10% Down >10%

June 2020 COVID-19

TPC Proprietary 4
Impact Survey
When do you think the production shortfall from COVID-19 will be made up?

70%

60%

50%

40%

30%

20%

10%

0%
C2Q C3Q C4Q Never
Mar Apr May

June 2020 COVID-19

TPC Proprietary 5
Impact Survey
 If production delta will not be recovered by C2Q, why?
(multiple answers OK)

Feb Mar Apr May

60%

50%

40%
% Responses

30%

20%

10%

0%
Not enough workers to Not enough components to Virus still will not be Demand destruction
complete builds complete builds contained enough

June 2020 COVID-19

TPC Proprietary 6
Impact Survey
How much demand destruction (if any) do you think we will see
due to COVID-19?

Feb Mar Apr May

50%

45%

40%

35%
% Responses

30%

25%

20%

15%

10%

5%

0%
None 1-5% 6-10% 11-15% >15%

June 2020 COVID-19

TPC Proprietary 7
Impact Survey
How much demand destruction (if any) do you
think we will see due to COVID-19?
May April
1% 2%

6% 8%
17% 20%

30%
32%

38%
46%

None 0-5% 6-10% 11-15% >15% None 0-5% 6-10% 11-15% >15%

June 2020 COVID-19

TPC Proprietary 8
Impact Survey