iPhone maker Pegatron suspends operations as China sees spike in COVID cases
India Today
iPhone maker Pegatron has suspended operations at two major plants in China including Shanghai and Kunshan. The reason behind the halt of operations is the government’s strict COVID-19 protocols in China.
iPhone maker Pegatron has reportedly suspended operations at two major plants in China including Shanghai and Kunshan. The reason behind the production halt is the government’s strict COVID-19 protocols due to the rise in cases in the country, once again. Pegatron, just like Foxconn, assembles iPhones for Apple.
Amid the rising COVID cases, China has put Shanghai under a tight lockdown since the end of March. The government has also introduced strict COVID restrictions in the neighbouring Kunshan area. This led Pegatron's Shanghai and Kunshan plants to go under production halt for the time being. Pegatron hasn't specifically revealed when the operations will resume at full capacity.
The iPhone maker said that the resumption of operations depends on the two plants being given clearance by the government. Pegatron further added that it will maintain close contact with customers and suppliers and "actively cooperate" with local governments to resume work as soon as possible.
Apple hasn't yet released any statement on the temporary suspension of China's two key plants.
Meanwhile, Taiwan's Financial Supervisory Commission highlights that as of April 7, a total of 161 listed Taiwanese companies halted their operations in Shanghai and Kunshan. Out of these hundreds of plants, 41 of them make electronics.
Analyst Ming-Chi Kuo with TF International Securities predicts that “complete resumption of production may not be possible until late April or early May". He also said that Apple could be able to "minimise the impact due to its strong supply chain and relationship with the Chinese government".
In addition, the world's largest contract electronics maker, Foxconn, also assembles iPhones in China. Its operations in the southern city of Shenzhen were disrupted last month considering the rise in COVID cases.
