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Foxconn Shifts Operations from Kunshan To Avoid China Covid Hit

Foxconn Interconnect Technology, which makes data transmission equipment and connectors, has been forced to switch operations to a back-up factory, until work can restart at Kunshan


Shanghai lockdown
Shanghai reported 52 new Covid-19 deaths on Thursday, up from 47 a day earlier, the local government said on Friday. Photo: Reuters.

 

Apple supplier Foxconn sees limited impact on business after production at its plant in China’s Kunshan city was halted because of Covid-19 controls, as operations have been shifted to another plant, the company said on Monday.

Foxconn Interconnect Technology makes data transmission equipment and connectors.

But manufacturing of these items in Kunshan will remain closed until the authorities give permission to restart, the group 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.

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.

 

  • Reuters with additional editing by Jim Pollard

 

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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

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