Apple Supplier Foxconn Forced to Suspend Operations in Shenzhen Due to Lockdown

Apple's leading supplier, Foxconn, has been forced to suspend operations in Shenzhen, China, following a city-wide lockdown that sees nonessential businesses close, public transportation halted, and residents advised not to leave their home unless for essential activities only.

Apple Vs Foxconn Feature 2
As Nikkei Asia reports:

Shenzhen is home to major tech companies such as Huawei, Oppo and TCL, and is also one of the biggest manufacturing hubs for Taiwan's Foxconn, supplying clients from Apple to Google to Amazon. The semi-lockdown comes as the global supply chain is still struggling with an ongoing chip shortage, as well as disruptions from the war in Ukraine.

Foxconn, the world's biggest contract electronics manufacturer, 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. It has activated plans to use facilities in other cities to support production.

It is not entirely clear what devices Foxconn produces for Apple at its two Shenzhen plants, but Foxconn is the largest maker of the iPhone. The new lockdown adds strain to an already crippled global supply chain that's impacting Apple's business.

Apple said the chip shortage cost it $6 billion in the last quarter of 2021, with bullish views on the impact the shortage will have in 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 colors of the iPhone 13 and ‌iPhone 13‌ Pro.

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Top Rated Comments

iDron Avatar
30 months ago

And the US still claims the pandemic is over haha
China is the only country continuing with 'zero covid', with zero success...
Score: 31 Votes (Like | Disagree)
Marbles1 Avatar
30 months ago
Apple needs to continue efforts to diversify production even if it eats into their profits / pricing. Relying so much on one country and that country being China is surely a massive risk. There are many other lower cost locations with a technical base which apple can encourage Foxconn to expand into in the long term - India, Vietnam, even Turkey.

It would be nice to be able to buy an Apple product that wasn't manufactured in a regime like China's.
Score: 24 Votes (Like | Disagree)
Breaking Good Avatar
30 months ago

But since the western media is so anti-China (probably due to racism and economic threat)…
Maybe people are finally waking up to the fact it doesn’t matter if it is China, Russia, Iran, Venezuela or Saudi Arabia, democratic countries should not allow their economies to become dependent on totalitarian regimes.
Score: 23 Votes (Like | Disagree)
contacos Avatar
30 months ago
And the US still claims the pandemic is over haha
Score: 19 Votes (Like | Disagree)
Solomani Avatar
30 months ago

And the US still claims the pandemic is over haha
Well... depends which "surge" the Chinese are experiencing. Is Shenzen still being ravaged by Omicron? Most of the USA has already passed the Omicron peak, and now is in the declining stage.

The news article(s) doesn't really give us any epidemiology details regarding the Shenzen lockdown. We don't know. Is it Omicron? Or is is some scary NEW variant... which may ravage and shut down the USA economy a few months down the line?
Score: 19 Votes (Like | Disagree)
kahkityoong Avatar
30 months ago
Good news for my wallet
Score: 14 Votes (Like | Disagree)