Company suspended Foxconn Apple supplier Foxconn operates at its Shenzhen province sites, one of which produces iPhones, following a government-imposed shutdown of the technology hub.
The Taiwanese company is headquartered in China in Shenzhen Province, as well as a major manufacturing site in Guanlan.
Comment period?!
The company said in a statement that it had suspended operations at the two sites and redistributed production to other sites to reduce the impact of the disruption. But she did not specify the length of the suspension period, according to “Bloomberg”, which was reviewed by “Al Arabiya.net”.
This comes as the measures taken by the Chinese government called on non-essential companies in Shenzhen to stop until March 20.
And while the shutdown might affect production of many devices made by Foxconn for Apple and other brands, demand for electronics typically declines in the first quarter of each year following the peak of the holiday season.
Shares of the Hong Kong-listed company fell 1% on Monday morning.
“iPhone City”
It is noteworthy that Foxconn assembles most of the iPhone phones in another factory in the city of Zhengzhou in central China, which earned it the nickname iPhone City. The company was also among the first to face disruptions from the coronavirus outbreak two years ago when it asked employees to move away from its Shenzhen headquarters as a precaution.
China placed 17.5 million Shenzhen residents in quarantine for at least a week on Sunday, in an effort to stem the spread of the COVID-19 virus.
The shutdown came following coronavirus cases across the country doubled to nearly 3,400, and will be accompanied by three rounds of citywide mass testing, according to a government notice. The move came on the heels of previous restrictions imposed on Shenzhen’s central business district.
And not only that, as the city is home to the headquarters of Huawei Technologies, SZ DJI Technology, and Tencent, as well as one of the busiest ports in China.
