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Blockade in China makes it difficult for Apple

Strict blockade measures to prevent the Covid-19 epidemic in Shanghai and Kunshan are affecting the supply chain of the US technology giant in Vietnam. China.

According to Nikkei, the three main suppliers of Apple such as Pegatron, Quanta and Compal had to suspend production activities of factories in Shanghai and the area near the city, because of strict blockade measures.

The blockade in China makes it difficult for Apple - Photo 1

Apple’s three main suppliers, Pegatron, Quanta and Compal have had to suspend production because of the blockade regulations in China.


In the above profile Stock exchanges On April 12, Pegatron, an iPhone assembler, said it had stopped operating two production facilities in Shanghai and Kunshan to comply with the government’s epidemic prevention regulations. Here are two bases iPhone production current Pegatron, as the company’s new iPhone assembly plant in India has yet to start operations. Pegatron generates about 20% to 30% of all iPhones globally. Currently, Pegatron is in close contact with customers and suppliers to update the situation, while complying with local government regulations and hopes to resume operations soon.

Quanta, home notebook production under the largest contract world and is a key MacBook manufacturer for Apple, has suspended operations at its main production site in Songjiang district, Shanghai, since early April 2022 under the government’s Covid-19 containment measures. Quanta’s total notebook capacity in Shanghai is about 20%. Major notebook and iPad maker Compal Electronics also suspended operations at its Con Son facilities.

Besides the three vendors mentioned above, there are also dozens of technology providers that said they have suspended operations in Shanghai and the surrounding city since April 2. These companies include two important printed circuit board manufacturers, Unimicron and Nan Ya Printed Circuit Board; BizLink, the main supplier of Dell and Tesla.

The latest survey results of the Taiwan Financial Supervisory Commission released on April 11, showed that about 161 listed companies in Taiwan, including many electronic equipment suppliers, had to temporarily close their jobs. manufactures in Shanghai and Kunshan area, one of the biggest electronics hubs in China.

The latest wave of Covid-19 has also spread to Suzhou, Jiangsu province, home to a cluster of other key electronics suppliers. iPhone assembler Luxshare Precision Industry, also known as Luxshare-ICT, has its only assembly plant in Con Son. According to an informed source, currently Luxshare-ICT is still operating under closed management and following strict disease prevention measures. Closed-loop management means that employees work and live entirely on site, and the factory relies heavily on inventory available in the complex.

According to Nikkei, the world’s largest iPhone assembler Foxconn suspended operations in Shenzhen, the second-largest manufacturing hub in China, for a few days last month, as the city faced an increase in sudden cases of Covid-19.

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