Foxconn suspends production at two factories in eastern city of Kunshan, putting Apple’s China supply chain on edge
- Apple’s prime supplier halted operations in its two plants located at Dianfa and Fuhong in Kunshan on April 20 after new Covid-19 cases were reported on site
- That has put further strain on Apple’s supply chain in China, where a few other manufacturing partners stopped production because of coronavirus restrictions
Operations have been suspended since Wednesday last week after new Covid-19 cases were reported at the two plants, where employees are confined to dormitories inside those campuses, according to two workers at the affected factories, who declined to be named because they are not authorised to speak to media.
Those two dormitories have been put under strict lockdown, according to a statement by local government authorities on Thursday.
The sudden halt of operations at the two Foxconn plants last week came after Kunshan authorities were expected to ease travel restrictions and allow manufacturing activities to resume in the city.
Kunshan is about 51 kilometres away from neighbouring Shanghai to its east. On Friday, Kunshan reported 23 new Covid-19 cases, up from single digits a week ago.
Foxconn’s decision to suspend operations at its two plants in Kunshan marks a setback for the Apple supplier, which managed to continued production during the citywide lockdown by implementing a “closed-loop” system that confines employees within its campuses.
That move also put Apple’s supply chain network in mainland China on edge, as a few other contract manufacturing partners in the country have stopped production because of Covid-19 restrictions.
Foxconn did not immediately reply to a request for comment on Saturday.
Pegatron had stopped making personal computers, communication devices and consumer electronics for unnamed brands in Kunshan and Shanghai, a company spokeswoman confirmed on Tuesday.
“A complete resumption of production [in Shanghai and Kunshan] may not be possible until late April or early May,” Kuo said in his tweet.
Apple supply chain hit by lockdowns in Shanghai, Kunshan
Foxconn established its first plant in Kunshan in 1993 as part of the firm’s expansion in the Yangtze River Delta, a megalopolis that comprises areas of Shanghai, Jiangsu and the eastern coastal province of Zhejiang. Tens of thousands of workers are employed by Foxconn in Kunshan, where its cumulative revenue since 1993 has reached about 290 billion yuan (US$44.6 billion), according to a People’s Daily report in 2020.