Foxconn halts Shenzhen operations, adjusts China production on Covid-19 curbs

Foxconn's moves come as Shenzhen announced a lockdown due to rising Covid-19 cases in the city. PHOTO: REUTERS

TAIPEI (NYTIMES, REUTERS) - Major Apple supplier and iPhone assembler Foxconn said on Monday (March 14) it has suspended operations in the Chinese city of Shenzhen to comply with the local government's Covid-19 control policies.

On Sunday night, the southern tech hub announced a lockdown for the next seven days. All non-essential workers must stay home, adults must undergo three PCR tests in the coming days, and buses and subway trains are being halted. Supermarkets, farmers markets, pharmacies, medical institutions and express delivery services will be allowed to stay open.

The tightened restrictions follow 60 new local Covid-19 cases of confirmed symptoms for Saturday, the city's highest since China contained the first outbreak in early 2020.

Foxconn, formally known as Hon Hai Precision Industry, said it will deploy backup plants to reduce disruption to production.

"Due to our diversified production sites in China, we have adjusted the production line to minimise the potential impact,"the Taiwanese firm said in a statement.

Foxconn has required all employees to take a PCR test and will resume its Shenzhen operations when advised to do so by the local government, the statement said.

Other Taiwanese companies which said they had suspended Shenzhen operations included chip substrate and printed circuit board maker Unimicron Technology, another Apple supplier, and flexible printed circuit board maker Sunflex Technology.

Sunflex said its plant would be closed until Sunday.

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