Covid-19: Apple supplier Foxconn suspends production at two China factories

Apple Inc's prime supplier Foxconn Technology Group halted operations at two of its factories in eastern China's Kunshan after new Covid-19 cases were reported on site, the South China Morning Post reported on Monday.

The operations at those plants have been suspended since Wednesday last week, with all employees confined to dormitories inside, the report said.

The two Foxconn plants, located at Dianfa and Fuhong in the northern part of Kunshan, are two of four manufacturing campuses operated in the city by the Taiwanese firm, which is also known as Hon Hai Precision Industry Co Ltd.

Foxconn unit sees limited impact

However Foxconn said that there is limited impact as it has shifted production elsewhere, it said on Monday.

The operations in Kunshan of Foxconn Interconnect Technology, which makes data transmission equipment and connectors, will remain closed until the authorities give permission to restart, it said.

"As production has previously been deployed to backup factories, the factory's main products are located in overseas shipping warehouse and inventory levels are still sufficient, the impact on the company's business is limited," Foxconn said in a statement.

A source familiar with the situation said the plant is not a major supplier for Apple products and the company was able to shift production to other facilities.

"We do not see an impact on iPhones," the person said.

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China has put Shanghai under a tight lockdown since late March and neighbouring Kunshan has also tightened curbs to control the country's biggest Covid-19 outbreak since the coronavirus was discovered in late 2019 in the city of Wuhan.

That had caused dozens of Taiwanese firms, many making parts for the semiconductor and electronics industries, to suspend operations.

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