The global memory semiconductor market faces a limited risk of supply disruptions from the novel coronavirus outbreak and is likely to continue to recover, according to a report by Fitch Ratings.

The industry's manufacturing facilities are highly automated and are less affected by labor shortages and travel restrictions compared with other technology hardware manufacturers, the ratings agency noted.

In addition, most companies stocked up enough materials before the Lunar New Year holiday to avoid shortages for the next few quarters.

The manufacturing factories located in China, such as Samsung's Xi'an factory and SK Hynix's Wuxi factory, continue to function normally, with high capacity rates, the report cited information from Omdia, a technology research house.

It expects the mobile-phone and PC industries to weaken due to delays or halts at manufacturing sites, which are labor-intensive and mostly located in China.

However, the impact is likely to be offset by solid demand from server manufacturers as data centers in North America and China continue to expand, led by increasing over-the-top services, games and online activities.

The ultimate impact of the epidemic on the semiconductor industry's overall operating performance will depend on the severity and duration of the crisis, according to Fitch.

"A prolonged outbreak across the globe could derail the industry's recovery," the report added.