Foxconn and other manufacturers are suspending operations in Shenzhen, China’s tech hub after authorities declared a partial lockdown due to an increase in COVID-19 cases. Following the report of 60 new infections on Sunday, businesses providing non-essential services have been ordered to close, and everyone in the 17-million-person city will be tested for COVID-19.
Foxconn is the world’s largest contract electronics manufacturer and the most important supplier to companies such as Apple and Samsung. Many Chinese tech behemoths, including Huawei, Tencent, and Oppo, have their headquarters in Shenzhen, which is located near the Hong Kong border. Foxconn has announced that it will halt production at its Longhua and Guanlan factories until further notice, according to Nikkei; the Shenzhen facility is Foxconn’s second largest in the country.
China’s approach to limiting the spread of COVID-19 remains strict. Since the start of the pandemic, it has reported a total of 4,636 deaths and 115,466 confirmed cases. Shanghai, the country’s most populous city and home to major chipmaker SMIC, is also imposing new restrictions beginning today; buses to other provinces will be suspended, and anyone attempting to leave or enter the city will be required to pass a negative PCR test. On Sunday, 64 new COVID-19 cases were reported in Shanghai.
According to the report, product demand is lower at this time of year because it follows the holiday season peak. Nonetheless, Apple has recently announced new products, including the third generation iPhone SE, the iPad Air 5, and the Mac Studio – all of which may face delays in shipping.
Other Shenzhen-based companies, such as Huawei, DJI, and Tencent, have also been forced to halt operations until the lockdown is lifted.
