(Bloomberg) — Apple Inc. supplier Foxconn is halting operations at its Shenzhen sites, one of which produces iPhones, in response to a government-imposed lockdown on the tech hub city.
The Taiwanese company, also known as Hon Hai Precision Industry Co., has its China headquarters in the area and a key manufacturing site in Guanlan. It is suspending operations at the two campuses and has reallocated production to other sites to reduce impact from the disruption, the company said in a statement. Foxconn didn’t specify the length of the suspension. The measures from the Chinese government call for non-essential businesses in Shenzhen to halt until March 20.
While the shutdown may affect production of many of the devices Foxconn makes for Apple and other brands, demand for electronics typically troughs in the first quarter of every year after the holiday-season peak.
China Locks Down iPhone, Tech Hub Shenzhen as Covid Cases Jump
China placed the 17.5 million residents of Shenzhen into lockdown for at least a week on Sunday, seeking to halt a growing Covid-19 outbreak. The lockdown, which came after virus cases doubled nationwide to nearly 3,400, will be accompanied by three rounds of citywide mass testing, according to a government notice. The measure followed earlier restrictions placed on Shenzhen’s central business district.
All bus and subway systems have been shut, and businesses, except those providing essential services, have been closed. Shenzhen is home to the headquarters of giants Huawei Technologies Co., SZ DJI Technology Co. and Tencent Holdings Ltd. as well as one of China’s busiest ports.
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