Apple’s main supplier Foxconn has been forced to suspend operations in Shenzhen, China, following a citywide lockdown that sees the closure of non-essential businesses, public transport interrupted and residents asked not to leave their homes, except for essential activities only.
As Nikkei Asia reports:
Shenzhen is home to big tech companies such as Huawei, Oppo and TCL, and is also one of Foxconn’s biggest manufacturing hubs in Taiwan, supplying customers from Apple to Google to Amazon. The semi-lockdown comes as the global supply chain continues to grapple with a continued shortage of chips, as well as disruptions from the war in Ukraine.
Foxconn, the world’s largest contract electronics maker, said in a statement on Monday that it would suspend production at its Longhua and Guanlan factories in Shenzhen until further notice from the local government. He activated plans to use facilities in other cities to support production.
It’s unclear exactly which devices Foxconn produces for Apple at its two factories in Shenzhen, but Foxconn is the largest iPhone maker. The new lockdown adds pressure to an already crippled global supply chain that is impacting Apple’s business.
Apple said the chip shortage cost it $6 billion in the final quarter of 2021, with optimistic views on the impact the shortage will have over the coming quarters. Apple is planning a slew of new product launches around the world next week, including the all-new Mac Studio, Studio Display, new iPhone SE, iPad Air, and new iPhone 13 and iPhone 13 colors Pro.
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