Apple supplier Foxconn partially resumes production at ‘closed-loop’ Shenzhen campuses amid tech hub’s Covid-19 surge
- The iPhone manufacturer said Shenzhen factories will resume work while keeping employees confined to company campuses
- Foxconn suspended operations on Monday, when Shenzhen initiated a citywide lockdown to fight its worst Covid outbreak in two years
The resumption of business, following a two-day suspension amid a citywide lockdown, was only allowed on campuses that have both employee housing and production facilities, according to a statement on Wednesday from Foxconn, also known as Hon Hai Technology Group. The company said it has implemented the required health measures for the employees who live on campus.
The partial resumption of production at Foxconn’s two major Shenzhen campuses, located in Longhua and Guanlan districts, started on Wednesday, according to a Foxconn spokesman.
Foxconn suspends iPhone factories in Shenzhen amid lockdown of tech hub
“This process … adheres to strict industry guidelines and closed-loop management policies issued by the Shenzhen government,” Foxconn said. “The company will continue to work closely with the relevant authorities in monitoring these operations very closely.”
Apart from firms offering essential public services and those ensuring daily supplies are delivered to Shenzhen and neighbouring Hong Kong, all other companies will need to follow the work-from-home policy or suspend operations, according to the Shenzhen government.
However, the government noted that industrial sites where workers live, work and commute in a closed environment can continue to operate normally with prevention measures in place.
Shenzhen has been battling a surge of infections caused by the Omicron variant since late February, with 55 new confirmed cases reported on Tuesday. While relatively small compared with Hong Kong, which had 27,765 new cases the same day, the outbreak is the largest seen in Shenzhen since the pandemic started.
Foxconn, which employs nearly 200,000 people in Shenzhen, set up its first mainland factory in the city in 1988, taking advantage of China’s low-cost labour and resources and helping build the country into an integral part of the global value chain for hi-tech products.
The Taiwanese company has gradually relocated production from Shenzhen to inland provinces, including the world’s largest iPhone factory in Zhengzhou, due to rising labour costs in the southern tech hub.
The manufacturer said on Monday that it had adjusted production lines to minimise disruption to its business.
