Apple supplier Foxconn has suspended all its operations at its production facility in Shenzhen, China owing to a lockdown that has been imposed in the city owing to the rising number of Covid-19 cases. Also Read - Apple Watch Series 8 to feature new design with flat display, may launch alongside iPhone 14
According to a Bloomberg report, the company also known as Hon Hai Precision Industry is suspending its operations at the two campuses in Shenzhen, one of which is in Guanlan while the other one is in Longhu, until further notice from the local government. To mitigate some of the effect of suspending production at two of its manufacturing sites, Foxconn has reallocated the production to other sites that are operating regularly. Also Read - Top 5 Accessibility features coming to Apple devices this year
As per a separate report by Foxconn’s display-manufacturing unit, General Interface Solutions (GIS), also announced that its Shenzhen-based manufacturing unit will halt production starting Monday and that it will reallocate some of the production to other facilities. Also Read - Apple hasn't launched its AR/VR headset yet: Here's why
The move comes at a time when the company is already struggling to keep up the production amid the ongoing global chip crisis and the Ukraine war. It is likely to affect the production of iPhones, especially since Shenzhen is the company’s second-largest iPhone manufacturing hub in China after Zhengzhou in China’s Henan province.
The Bloomberg report also notes that said suspension of its Shenzhen facility isn’t likely to make a major dent in the demand and supply of the Apple iPhone models as the demand for electronic devices comes down in the first quarter of every year after the holiday season peaks.
China placed the 17.5 million of Shenzhen’s residents into lockdown until March 20 starting this Sunday in order amid the rising number of Covid19-cases in the region. As per reports, all bus and subway services have been shut, and businesses, except the ones providing essential services, have been closed in all nine districts in Shenzhen and companies have been asked to make their employees work-from-home starting this Monday.
While no death has been reported so far, the number of new Covid-19 cases keep rising in China. While the number of Covid-19 cases tripled by Sunday in Mainland China, Shenzhen reported 60 new Covid-19 cases, which is the highest since the outbreak in 2020.