Foxconn Stops iPhone Shenzhen Site Due To Covid Restrictions

In reaction to a government-imposed lockdown on the tech center city of Shenzhen, Apple Inc. supplier Foxconn has halted operations at one of its Shenzhen locations, which builds iPhones.

Hon Hai Precision Industry Co., a Taiwanese business, has its China headquarters and a major production facility in Guanlan. The firm stated in a statement that it is stopping operations at the two campuses and has moved manufacturing to other locations to minimize the impact of the disruption. The length of the suspension was not specified by Foxconn. The Chinese government has ordered that non-essential enterprises in Shenzhen be shut down until March 20.

Foxconn Suspends Production At 2 Sites

While the closure may have an impact on many of the items Foxconn produces for Apple and other companies, demand for electronics normally dips in the first quarter of each year following the Christmas season. On Monday morning in Taipei, Hon Hai shares were down as much as 1%.

Foxconn, Apple’s principal smartphone assembler, produces the majority of its products in Zhengzhou, a city in central China that has earned the moniker “iPhone City.” Its Guanlan location is of a lesser size. The corporation was one of the first to be affected by the coronavirus epidemic two years ago when it ordered employees to avoid its Shenzhen headquarters as a precaution.

Under Sunday, China put Shenzhen’s 17.5 million citizens on lockdown for at least a week in an attempt to contain a rising Covid-19 epidemic. According to a government announcement, the shutdown would be followed by three rounds of citywide mass testing after viral cases nearly quadrupled statewide to about 3,400. Shenzhen’s core business area has previously been subjected to limitations.

All bus and metro lines have been shut down, and all companies have shuttered save those that provide critical services. Huawei Technologies Co., SZ DJI Technology Co., and Tencent Holdings Ltd. all have headquarters in Shenzhen, which also has one of China’s busiest ports.