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Apple supplier Foxconn suspends production at two factories amid Covid-19 scare

As China continues to struggle with the spread of the virus despite the implementation of stringent measures, Apple Inc’s prime supplier Foxconn Technology Group halted operations at two of its factories in eastern China’s Kunshan after new Covid-19 cases were reported on site, the South China Morning Post reported on Monday. 

The report said that the operations at those plants have been suspended since Wednesday last week, with all employees confined to dormitories inside, according to Reuters report.

The two Foxconn plants, located at Dianfa and Fuhong in the northern part of Kunshan, are two of four manufacturing campuses operated in the city by the Taiwanese firm, which is also known as Hon Hai Precision Industry Co Ltd.

Meanwhile, the lockdown is part of the government’s relentless campaign to eliminate Covid-19 cases around the country.

As per the Foxconn statement on Sunday, “the Zhengzhou campus is still operating normally and the site continues to comply with the government measures to curb the spread of the virus.” The Zhengzhou airport zone did not immediately respond to requests for comment outside of regular business hours.

Apple suppliers in China have been affected to varying degrees by China’s pursuit of its Covid Zero policy and the impact has remained limited, given it is traditionally low season and demand for consumer electronics is in a trough, according to Bloomberg.

Additionally, Foxconn’s smaller rival Pegatron Corp. suspended operations at its iPhone plants in Shanghai and Kunshan. Apple laptop maker Quanta Computer Inc. only recently resumed some production after halting work for a few days in Shanghai. In mid-April, Zhengzhou locked down areas near Foxconn’s iPhone City campus, though the move did not affect the plant.

(With inputs from agencies)

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