One of Apple’s chief suppliers, Foxconn, has suspended production in Shenzhen, China, owing to a lockdown imposed due to the latest COVID-19 outbreak. The electronics manufacturer announced that it would halt production at its Longhua and Guanlan factories in Shenzhen “until further notice from the local government.” In the interim, the supplier added that it would make use of its facilities in other cities to aid production.
Shenzhen is Foxconn’s second-largest manufacturing center in China. It holds an important position in engineering prototyping, as much of the early research and development takes place at its campuses. Unimicron, Taiwan’s largest printed circuit board manufacturer and a key supplier to Apple, also suspended production.
The iPhone maker isn’t the only company affected, as Shenzhen also houses other major tech firms such as Huawei, Oppo, and TCL. Although Foxconn is best known for manufacturing iPhones and other Apple products, it is also a major supplier for Amazon, Google, and Dell.
Additionally, the Shenzhen government has suspended public transportation and non-essential business operations in the city. Only essential businesses such as pharmacies, hospitals, and markets can stay operational, while restaurants can only accept food delivery orders.
Lockdown May Affect iPhone Production
The Shenzhen lockdown adds to the disruption to Apple’s global supply chain, which is already grappling with the ongoing chip shortage and the ramifications of the Ukraine war. It’s unclear what Apple devices Foxconn assembles at its two Shenzhen plants, but there is speculation that iPhone production may be affected. Apple is scheduled to launch a range of products later this week, including the brand-new Mac Studio, Studio Display, third-gen iPhone SE, iPad Air 5, and the green iPhone 13.[Via Nikkei Asia]