✔️ 2022-03-14 09:33:11 – Paris/France.
Chinese rules aimed at stopping a Covid-19 outbreak in the tech hub of Shenzhen led to production stoppages affecting at least one supplier Apple Inc. AAPL -2,39%, in the latest blow to global electronics supplies.
A number of manufacturers, including Foxconn Technology Group, a major iPhone assembler, said they were halting operations in Shenzhen in accordance with local government policy. The government has placed the city on lockdown for at least a week and said everyone in the city should undergo three rounds of tests after 86 new cases of domestic Covid-19 infections were detected on Sunday.
Foxconn, formerly known as Hon Hai Precision Industry Co., said it did not know when its factories might resume production.
While China's case count is tiny by global standards, the country has adopted a zero-Covid policy that aims to nip all outbreaks in the bud through testing and lockdowns.
The disruption came less than a week after Apple showed off new products, including the latest version of its budget iPhone SE, which features fifth-generation, or 5G, high-speed communications, and the high-speed Mac Studio computer. of range.
A shortage of electronics has contributed to higher prices around the world, including in the United States, where inflation in February hit a 40-year high of 7,9%.
Foxconn's sites in Shenzhen, southern China, produce iPhones as well as iPads and computers. However, the majority of iPhones are made in a factory in the central province of Henan. Foxconn said it would aim to maintain production by moving work to other factories in China.
Printed circuit board manufacturer Unmicron Technology Corp. said its Shenzhen subsidiary halted production on Monday morning. Unimicron is also a major supplier to Apple, but does not currently handle Apple-related orders in Shenzhen, according to Apple's latest supplier list. Unmicron said the subsidiary accounts for less than 3% of its total revenue.
At least six other companies on Apple's list are based in Shenzhen.
The city is home to many Chinese manufacturing giants, including telecommunications equipment maker Huawei Technologies Co. and electric vehicle maker BYD Co.
All buses and subways have been closed. The local government has called on businesses to suspend most operations, except those providing essential services to residents and residents of neighboring Hong Kong.
More than 30 Taiwan-based makers of semiconductors and other electronic components filed announcements with the Taiwan Stock Exchange on Monday saying they were temporarily closing facilities in Shenzhen and nearby Dongguan.
Write to Yang Jie at jie.yang@wsj.com
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