iPhone Output at Foxconn's Biggest Plant Could Fall by 30% Next Month Due to China Lockdowns
iPhone production at one of the world's largest factories could fall by as much as 30% next month due to tightening COVID-19 restrictions in China, according to a new report today.
Apple manufacturing partner Foxconn's main Zhengzhou plant, which employs about 200,000 people, was hit by the stringent curbs after an outbreak at the factory, which led the city of about 10 million people locked down as a result.
It's not clear how many cases of the virus have been identified, but the outbreak forced staff to lock down at the workplace, which has reportedly caused unrest and even led some employees to escape by jumping a fence outside the plant.
Foxconn is working to boost iPhone production at another factory in Shenzhen city to make up for the shortfall, a person with direct knowledge of the matter told Reuters. A second person familiar with the situation said many workers remained at the Zhengzhou plant and that production was continuing.
Last week, Foxconn announced it was banning all dine-in catering at the Zhengzhou plant and would be requiring workers to eat meals in their rooms. At the same time, the Taiwanese company said it was maintaining normal production as it ramped up iPhone 14 assembly ahead of the busy holiday period.
Localities in China continue to grapple with President Xi Jinping's rigid zero-COVID policy, which imposes strict measures including anything from regular testing and travel restrictions to full-scale lockdowns.
Factories are usually able to continue to operate under a "closed loop" system where staff live and work on-site, but the arrangements have caused various problems, including workers expressing anger on social media at their treatment and living conditions.