After disruption caused by the coronavirus outbreak that first broke out in China, Apple supplier Dialog Semiconductor said on Wednesday it expected Chinese chip supply chain and contract manufacturers to return to normal in the second quarter.
At the same time Dialog – a design bureau that has no production facilities of its own – sees no evidence of backlogs that might reflect weakness in demand from customers that include iPhone maker Apple.
Output at Dialog’s main contract manufacturers has recovered to 50%-60% of capacity as workers return and facilities are disinfected following an extended Chinese New Year break, CEO Jalal Bagherli told Reuters. “By the end of March we should be closer to 100% capacity,” Bagherli said in an interview.
The Anglo-German chip designer forecast 2020 percentage revenue growth in the mid-teens, excluding its legacy business supplying the main power management integrated circuit (PMIC) for older Apple iPhones.
MacDailyNews Take: This statement from Dialog Semiconductor’s CEO jives nicely with Foxconn’s expectation that its factories in China will return to normal by the end of this month after resolving severe labor shortages due to the COVID-19 coronavirus outbreak.