Lunar New Year 2026 runs February 17th-24th. For global supply chains, the planning window extends from today, February 12th, through March 3rd—nearly three weeks when significant electronics manufacturing capacity operates at reduced levels.
Here's what we're seeing and how we're helping customers navigate this period.
Understanding the Timeline
The reality of Lunar New Year's impact goes beyond official dates:
February 12th-16th: Workers begin traveling home for family celebrations. Business activity slows naturally during this period.
February 17th-24th: Official holiday. Manufacturing facilities close, administrative functions pause.
February 25th-March 3rd: Graduated return through the Lantern Festival. Reduced staffing and capacity during ramp-up.
Mid-March: Full operational capacity typically restored.
The official 7-9 day closure translates to about three weeks of supply chain impact.
Regional Impact
Lunar New Year is observed across Southeast Asia—China, Vietnam, Singapore, Malaysia, Indonesia, and Thailand. For supply chains spanning these regions, this means coordinated capacity reductions rather than a single-country event.
Post-Holiday Market Dynamics
One consistent pattern: market conditions often shift after Lunar New Year.
Manufacturers use this period to evaluate costs and strategy. March typically brings announcements around pricing updates, allocation adjustments, and revised terms.
Practically speaking: teams securing commitments before mid-February work from current market conditions. Teams sourcing in March work with updated parameters.
Cultural Context
Lunar New Year is a 4,000-year-old tradition centered on family reunion. When 415million people travel home—the world's largest human migration—it reflects cultural priorities that transcend business considerations.
The celebration follows the lunar calendar (late January to mid-February annually)with 15 days of observance. Traditions include family dinners, red decorations(from the legend of the beast Nian who feared the color red), and cultural festivals culminating in the Lantern Festival.
Understanding this context helps set realistic expectations and strengthens relationships with manufacturing partners.
What We're Seeing Across Our Customer Base
This week: Customers are finalizing orders for March-April delivery windows. Logistics capacity is tightening as operational days compress.
Late February: Production pauses. Standard communication timelines extend.
Early-Mid March: Facilities reopen and begin capacity ramp-up. Workforce transitions (historically 30-40% don't immediately return) affect ramp speed. Backlogs accumulate during this period.
What We're Advising Customers
For immediate needs (this week): We're helping customers review March and April requirements and secure critical components while visibility is clear. For time-sensitive deliveries, this week offers the most predictable lead times and pricing.
For March planning: We're working with customers to develop scenarios for different market conditions post-holiday. What does strategy look like if pricing adjusts? If allocations shift? Planning for multiple outcomes reduces reactive decision-making.
For long-term resilience: We're having conversations about geographic diversification—not just for this holiday period, but for ongoing supply chain strength. Lunar New Year highlights where concentration risk exists.
Looking Ahead
If you're evaluating your supply chain strategy or need support navigating the next few weeks, reach out. Strategic partnerships matter most when market conditions shift. Browse our inventory or contact us today to learn more.
Frequently Asked Questions
When is Lunar New Year 2026?
Lunar New Year 2026 begins Monday, February 17th through Tuesday, February 24th.Supply chain impact extends from February 12th (when workforce travel begins) through March 3rd (Lantern Festival). Plan for reduced capacity during this three-week window.
How long do factories actually shut down?
Official closure: 7-9 days (February 17th-24th). Practical impact: approximately three weeks when accounting for pre-holiday slowdown and post-holiday ramp-up through early March.
When do factories close for Lunar New Year 2026?
Operations wind down around February 12th, with official closures February 17th. Official reopening is February 24th, with full capacity typically restored mid-March. For March-April delivery needs, this week provides clearest visibility.
Does this affect supply chains beyond China?
Yes. Vietnam, Singapore, Malaysia, Indonesia, and Thailand all observe Lunar New Year. Supply chains touching these regions should plan for coordinated capacity reductions.
Why does pricing change after Lunar New Year?
Manufacturers evaluate market conditions during this period and often announce updated pricing, allocations, and terms in early March. This market evolution means January conditions may differ from March conditions.
What is the Year of the Fire Horse?
2026is the Year of the Fire Horse in the Chinese zodiac—part of the cultural celebration. While traditionally associated with change and energy, our planning focuses on observable market dynamics rather than astrological predictions.
Wishing everyone a prosperous year ahead. 新年快乐 (Xīn Nián KuàiLè)!
