Apple iPhone supplier Foxconn suspends production in COVID-hit Shenzhen due to lockdown

Apple iPhone maker Foxconn on Monday said it has suspended its operations in China’s Shenzhen city after the government imposed a lockdown on the tech hub city. The Taiwanese company, also known as Hon Hai Precision Industry Co., has its China headquarters in the area and a key manufacturing site in Guanlan.

It is suspending operations at the two campuses and has reallocated production to other sites to reduce impact from the disruption, the company said in a statement.

Foxconn didn’t specify the length of the suspension. The measures from the Chinese government call for non-essential businesses in Shenzhen to halt until March 20.

“Meanwhile, we have required all the employees to have Covid PCR test on top of existing prevention measures to ensure the health and safety of our employees,” the company said.

News agency Reuters quoted company officials as saying that Foxconn and its subsidiaries’ operations in Shenzhen would be suspended for the first half of the week.

The company has two major plants in Longhua Science Park and Guanlan Science Park in Shenzhen.

While the shutdown may affect production of many of the devices Foxconn makes for Apple and other brands, demand for electronics typically troughs in the first quarter of every year after the holiday-season peak.

Along with Foxcoxx, automakers Toyota and Volkswagen were also forced to shut some operations, raising concerns over supply chain disruptions.

The Chinese authorities chose to clamp new lockdown measures after more than 3,000 cases of Coronavirus were reported in Shenzhen. This shutdown is likely to affect the production of many of the devices that the contract manufacturer makes for Apple and several other companies. All bus and subway systems have been shut, and businesses, except those providing essential services, have been closed. Shenzhen is home to the headquarters of giants Huawei Technologies Co., SZ DJI Technology Co. and Tencent Holdings Ltd. as well as one of China’s busiest ports, according to a report.  

• Apple
• COVID-19
• Foxconn
• iPhone supplier
• suspends production
• Shenzhen