Foxconn halts China operations due to COVID lockdown
Foxconn, a major supplier to Apple, has halted operations in Shenzhen, China, due to a local government-imposed lockdown following a new COVID-19 outbreak. There, the Taiwanese company has factories responsible for assembling iPhones and other Apple products.
As reported by Bloomberg, the lockdown led Foxconn to suspend operations at two of its campuses in Shenzhen. To reduce the impact of confinement, the company has relocated production to other sites which still operate regularly. The lockdown is expected to last until March 20.
China placed Shenzhen’s 17.5 million residents in lockdown for at least a week on Sunday, seeking to halt a growing Covid-19 outbreak. […] All bus and metro systems have been closed and businesses except those providing essential services have been closed.
The Chinese government has opted for a new lockdown after more than 3,000 cases of COVID-19 were reported in Shenzhen on Sunday March 13. Shares of Hon Hai (the group behind Foxconn) were down 1% on Monday morning in Taipei. While it will certainly hurt Foxconn, the lockdown will also impact Apple and other tech companies that rely on these facilities to manufacture their products.
The report points out that the demand for products at this time of year is not as high since it follows the peak of the holiday season. Still, Apple has just announced new products including the 3rd generation iPhone SE, iPad Air 5, and Mac Studio, which may have shipments affected.
Other Shenzhen-based companies, such as Huawei, DJI and Tencent, were also forced to suspend operations until the lockdown is over.
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