The coronavirus domino effect: South Korean tech firms reel as Vietnam links curbed

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The coronavirus domino effect: South Korean tech firms reel as Vietnam links curbed
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For one South Korean multinational company that makes smartphone components used...

SEOUL - For one South Korean multinational company that makes smartphone components used by Apple Inc and LG Electronics Inc, the coronavirus epidemic is dealing blow after blow.

In addition to continued difficulties with sourcing from China, the supplier of smartphone screen parts and camera modules to LG firms has been hit by some worker quarantines and is fretting about the prospect of even more - problems likely to ripple through to end customers including Apple. While China remains the best source for many parts and materials and is the base for major Chinese tech companies and big customers like Apple, Vietnam’s proximity made it an obvious choice for offsetting risk.

“We are having a tough time, because we can’t work there,” said the chief executive of a different supplier to LG, which also declined to be named. Those problems eased, but the virus explosion in South Korea, which now has more than 6,000 cases, poses an even bigger threat if swathes of workers are quarantined and factories are put on hiatus.

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