The Effect of COVID-19 on Display Supply

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COVID-19 has had a dramatic effect on the electronics industry. The worldwide drive for people to work and educate from home and the increase in demand for medical products have taken the supply of electronics components from overcapacity to shortage and extended lead times. This was multiplied by the shutdown of manufacturing and the attempt to catch up with previous demand. The industrial market has also gotten hit by the loss of small gen fab capacity due to the shutting down of older, less competitive fabs.

Before COVID-19, the display market had been in an oversupply with the slowdown in cell phone demand. With the increased demand for laptops, monitors, and even TVs has backfilled this capacity and driven us into a shortage situation. This shortage of electronic components is not only in the display market but extends to basic components like resistors and capacitors. 

We can expect longer lead times, price increases, and some reluctance to start new display programs. This situation will probably continue into mid-2021, depending on the continued effect of COVID-19 and if companies adopt the home office as a norm.

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