iPhone maker Foxconn resumes production in Shenzhen as lockdown partially eases

Apple vs Foxconn Feature 2

Apple’s primary iPhone assembler Foxconn says it has resumed production at its Chinese manufacturing plant in Shenzhen after a partial lifting of a city-wide lockdown that went into effect on Monday.

Apple vs Foxconn Feature 2

Taiwanese company told Reuters It had resumed some production and operations at its Shenzhen campus after meeting government conditions for employees to live and work in bubble arrangements and adopt a “closed-loop management” system.

The system was used successfully during the Winter Olympics in Beijing and event personnel were tightly closed from the public, as well as routine testing for those involved.

“Some operations have resumed and some are in production,” Foxconn said in a statement. The system at the Shenzhen facilities subjected the staff living there to the necessary health measures.

“This process, which can only be carried out on campuses that include both employee accommodation and production facilities, follows strict industry guidelines and closed-loop management policies issued by the Shenzhen government,” it added.

It is not known which Apple products Foxconn manufactures at its two Shenzhen plants, but Foxconn is the largest manufacturer of the iPhone. Manufacturers in Guangdong province, home of Shenzhen, said factory closures have reduced deliveries, while logistics difficulties are making it harder to ship goods to overseas customers.

Foxconn on Wednesday acknowledged that 2022 would be “challenging“Revenue for the supply chain and for the year is projected to fall by up to 3% – its first annual sales decline in six years – as a lack of chips reduces smartphone production and the pandemic shows no sign of easing in China. does not show.

Apple said chip shortages cost $6 billion in the last quarter of 2021, but predictions for this year remained sharp despite these stresses on the global supply chain. Despite warnings from Foxconn that the chip shortage is expected to run into the second half of 2022.

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