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iPhone Maker Pulls Off Production Plants as China Covid Breakdown Impacts Tech Supply

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A minimal surge in Covid-19 cases ushered the Chinese production hubs in Shenzhen and Changchun to shut down in recent days. The companies have halted manufacturing at many electronics production factories in the recent add-on to the world’s pummeled supply chain.

Taiwanese electronic manufacturing firm Pegatron Corp. has stopped manufacturing at its Chinese plants in Shanghai and Kunshan. Chinese policies to be in control of the coronavirus breakout in two years turned upside down the global supply chains. Peculiarly, it has shown its most concern towards the electronic manufacturing department.

Pegatron said in an exchange filing Tuesday that there are no words of resumption of production at the sites, and it will depend upon the notice from the government. Pegatron had put its utmost efforts to keep on the production happening. It had the local government’s permission to maintain its management with a closed-loop system that would reduce the chances of workers getting infected.

Pegatron has now given away its production and splits up the production of iPhone assembly orders in China with Taiwanese tech giant rival Foxconn Technology Group and Chinese peer Luxshare Precision Industry Co.

Foxconn stopped some of its iPhone assembly work in Shenzhen for a few days in March because of Covid-related restrictions. Foxconn is currently taking on the iPhone 13 manufacturing project in India at Foxconn’s plant in Sriperumbudur near Chennai.

But, we should never expect Apple to drop the prices of the iPhone in India. Apple does not have that plan yet, perhaps in the future.

Shanghai government on Monday said it was partially relieving a city-wide lockdown. However, most of its residents still objected to being under strict restrictions, and local communist party chief Li Qiang pledged to follow up the measures to control the upsurge.

Whereas the Kunshan’s local government said, it would follow the current covid prevention methods to control the outbreak even though the decrease in the number of cases, the government asks residents to go out only if necessary. Boundless Chinese lockdowns are approaching an undeclared impact on the world’s No. 2 economy, where most electronics, from iPhones to tiny chips, are made.


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