Foxconn, the supplier for Apple, has halted operations at its locations in Shenzhen, which produces some iPhones, following a government-imposed lockdown on the city, a tech hub. The Taiwanese company's main headquarters are in Shenzhen, along with a major manufacturing site in Guanlan.
In a statement, the company announced it has suspended operations at the two sites and redistributed production to other locations to minimize the disruption's impact. However, it did not specify how long the suspension would last, according to Bloomberg, which was reviewed by Al Arabiya. This comes as the measures taken by the Chinese government called for non-essential businesses in Shenzhen to cease operations until March 20.
While the lockdown may affect the production of various devices that Foxconn manufactures for Apple and other brands, electronics demand typically decreases in the first quarter of each year following the peak holiday season. The company's shares listed in Hong Kong fell by 1% this Monday morning.
Foxconn assembles most of the iPhones at another factory in Zhengzhou, central China, earning it the nickname "iPhone City." The company was among the first to face disruptions caused by the coronavirus outbreak two years ago when it asked employees to stay away from its headquarters in Shenzhen as a precaution.
On Sunday, China placed 17.5 million Shenzhen residents under a one-week quarantine in an attempt to stop the spread of COVID-19. The lockdown followed a doubling of infection cases nationwide to nearly 3400, accompanied by three rounds of citywide mass testing, according to a government notice. This move came after previous restrictions had been imposed on Shenzhen's central business district.
Additionally, 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.
