iPhone assembler Pegatron has suspended production at its Chinese factories in Shanghai and Kunshan as the worst coronavirus outbreak in two years disrupted global supply chains.
The resumption of production at the sites will be subject to notifications from the government. The company continues to evaluate the impact of the suspension on its finances. The Taiwanese company manufactures iPhones in Shanghai and nearby Kunshan, which are on lockdown as China implements its Covid-19 zero spread strategy. So far, Pegatron has been able to keep production running as local governments have allowed some manufacturers to keep their operations running with a closed system that reduces the chance of workers being infected.
Pegatron shares iPhone assembly orders in China with Taiwan’s larger rival Foxconn Technology Group and China’s Luxshare Precision Industry Co. In March, Foxconn suspended some iPhone assembly work in Shenzhen for a few days due to Covid-related restrictions.
Shanghai said on Monday it was partly easing the citywide lockdown, but most of its residents are still subject to tight movement restrictions, and local Communist Party chief Li Qiang vowed to continue anti-coronavirus measures. The week-long lockdown has caused food shortages and threatens to further complicate already fragile supply chains.
The Kunshan local government has said it will stick to its current Covid prevention policy despite the decline in infections. Widespread lockdowns in China are causing untold damage to the world’s second economy, where most electronics are made from iPhones to laptops and PCs.
Source: ixbt
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