Monday Mar 14 2022

Lockdown forces iPhone's top assembler in China to pause work: report

Apple logo. Reuters/File
Apple logo. Reuters/File

  • China imposes a strict lockdown in Shenzhen due to COVID-19 cases reaching 3,400.
  • Lockdown impacts production of Foxconn, top iPhone assembler, and threatens global supply chains.
  • Travel and subways restricted in the city. 

The headquarters of the top iPhone assembler in Shenzhen, China stopped a key manufacturing plant and paused its operations amidst a COVID-19 lockdown, reported The Business Insider.

The city is often referred to as “The Silicon Valley of China” because it hosts the headquarters of multiple multinational businesses. Its lockdown imposes a serious threat to Apple's global supply chain.

Headquarters of Foxconn, also known as Hon Hai Precision Industry, in Taiwan claimed that the company’s operations were halted due to the COVID-19 situation in Shenzhen, but the company did not release a statement immediately.

We need the government’s approval before starting work in the city, said a spokesman.

China enforced a lockdown on over 18 million residents living in the Southern part of Shenzhen till at least March 20 on Sunday.

China pursued a zero-covid policy due to which multiple cities were locked down. The omicron variant, however, made it very difficult for the country to continue with this approach.

On Sunday, China reported twice the number of new cases from the day before, the total reaching 3,400. This makes it the worst outbreak in two years.

Currently, the subways and trains in Shenzhen have stopped operating and the citizens have been instructed to limit their travel.