Tuesday, May 17, 2022

Foxconn halts production as Shenzhen goes into lockdown

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Foxconn and other manufacturers are suspending operations in China’s Shenzhen tech center after authorities announced a partial shutdown due to an increase in COVID-19 cases. Businesses providing non-essential services have been ordered to close and everyone in the city of 17 million will be tested for COVID-19 after 60 new infections were reported on Sunday.

Foxconn is the world’s largest contract manufacturer of electronics and the main supplier to Apple and Samsung, among others. Many Chinese tech giants such as Huawei, Tencent and Oppo have their headquarters in Shenzhen, which is near the border with Hong Kong. Foxconn says it will halt production at its Longhua and Guanlan plants until further notice, Nikkei reports† the Shenzhen base is Foxconn’s second largest in the country.

China continues to take strict action to limit the spread of COVID-19. It has reported a total of 4,636 deaths and 115,466 confirmed cases since the start of the pandemic. Shanghai, the most populous city in the country and home to major chipmaker SMIC, is also issuing new restrictions starting today; buses to other counties will be suspended and a negative PCR test will be required for anyone attempting to leave or enter the city. On Sunday, 64 new cases of COVID-19 were reported in Shanghai.

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