Foxconn stops operations in Shanghai because of Covid-19

Report from South China Morning Post said the company has suspended production at two factories Dianfa and Fuhong in the east Shanghai. It is known that these factories produce data transmission equipment and connectors.

‘s Zero-Covid Policy China make Foxconn “in trouble” reuters

Foxconn is also known as a manufacturer of iPhones and other Apple products. However, the company denied doubts about low productivity and said the outage did not affect overall inventory levels related to iPhones.

“Since production was previously deployed to backup factories, the factory’s main products are shipped overseas and the inventory is still sufficient, thus affecting operations. business of the company is limited”. Foxconn said in a statement.

It is known that Chinese authorities have placed factories in Shanghai in a state of blockade since mid-March this year. This led to more supply chain problems globally, while China’s chip production capacity fell by 4.2%.

Factory workers lived and worked on site in a closed loop. This is done to ensure production capacity is not affected during Shanghai lockdown due to the “Zero-Covid” policy that the Chinese government is applying.