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War: Shenzhen closed due to Covid
  • Vitaliy_KiselevVitaliy_Kiselev

    Apple suppliers Foxconn and Unimicron Technology Corp said on Monday they have suspended operations in the Chinese city of Shenzhen, after the tech hub imposed strict measures to stem a COVID-19 outbreak.

    Shenzhen, known as China's Silicon Valley, is carrying out mass testing after dozens of new local cases were recorded in the southern city. Officials have suspended public transport and urged people to work at home this week as much as possible. read more

    Foxconn, formally known as Hon Hai Precision Industry Co Ltd, said its Shenzen operations would be suspended until further notice, adding it would deploy backup plants to reduce the disruption to production.

    Two sources familiar with the matter told Reuters that Foxconn and its subsidiaries' operations in Shenzhen would be suspended for the first half of the week.

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  • Vitaliy_KiselevVitaliy_Kiselev

    The government of Shenzhen, China has imposed a COVID lockdown of the city for a week until March 20, with manufacturers there forced to suspend production.

    Taiwan-based touch panel maker GIS will suspend the operation at its factories in Shenzhen for a week in the wake of the lckdown, which was announced on the evening of March 13. GIS's Shenzhen production accounts for about 30% of the company's overall capacity and the company is planning to adopt more flexible working schedules at its plants in Chengdu and Wuxi - both in China - to fill the gap.

    GIS expects the impact to be limited but will continue to monitor clients' sales and order pull-ins for the long term.

    Foxconn's plants in Shenzhen will also be locked down and will wait for the local government's notification when production can resume. Since Foxconn has already prepared several backup plants, the company has begun shifting orders to the backup plants to minimize the impact of the lockdown.

    Foxconn has also begun conducting COVID-19 tests for all its workers at local factories.

    Taiwanese PCB makers Avary (a subsidiary of Zhen Ding), Unimicron Shenzhen, and Global Brands Manufacture's subsidiary in Shenzhen also suspended production at their factories.

    Avary's announcement noted that the company's other plants will provide support to help satisfy clients' demand, while Unimicron expects the lockdown to only have a limited impact on its operation as the subsidiary only contributes less than 3% of its overall revenues. Global Brands Manufacture also believes the lockdown at its subsidiary's plants to only have a minor impact.

    Shenzhen Taiflex Electronics, a subsidiary of FCCL maker Taiflex Scientific, will follow the Shenzhen government's orders, but the decision will not have a major impact on the company's operation since Shenzhen Taiflex is mainly responsible for the trading business instead of manufacturing.

    Inductor maker King Core will also lock down its Shenzhen plants and wait for further notifications from the local government.

    Innolux's office in Shenzhen will work from home for a week with all employees to also receive COVID tests. Since Innolux does not have production lines in Shenzhen and Dongguan, it will not have much of an impact.

    In Shanghai, PCB drill maker Topoint noted that the company will perform a 48-hour COVID-19 test, following the local government's request. The test will end at 8 am on March 15.

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