The Chinese city of Shenzhen has gone into lockdown due to increasing corona infections. All non-essential businesses must suspend operations until March 20. As a result, production at Foxconn and other electronics manufacturers in Shenzhen is temporarily halted.
It is not yet clear what the consequences of the production stop for a week will be. Foxconn makes equipment for numerous electronics companies, including Apple and Samsung. Shenzhen is a major tech hub in China. Companies such as Huawei, OPPO and TCL are located there and the Taiwanese Foxconn has its largest production location.
According to Nikkei Asia, Foxconn said in a statement that production at the Longhua and Guanlan factories has been halted “until further instructions from the local government.” For the time being, the local government has imposed a lockdown until Sunday 20 March. It is not yet clear whether the factories will be able to reopen next week. Foxconn says it is deploying facilities in other cities to support production.
General Interface Solution Holding, a Foxconn subsidiary that makes touch modules for screens, also stopped production on Monday. GIS makes such modules for Apple and Samsung, among others.
According to Nikkei Asia, Taiwan’s largest PCB manufacturer Unimicron has also stopped production in Shenzhen. That company supplies to Apple, Intel and Nvidia, among others. However, Unimicron says its branch in the Chinese city accounts for only three percent of the company’s revenue.