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Foxconn closes Shenzhen factories after fresh COVID outbreak

2022-03-14 18:59 by
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Foxconn, a major assembler of Apple's iPhones, said Monday it is pausing operations in Shenzhen, a Chinese manufacturing hub, after an uptick in Covid-19 cases led the city to shut down again.

Foxconn is the world's biggest contract manufacturer of electronics, and the most important supplier to companies including Apple and Samsung. Many Chinese tech giants like Huawei, Tencent, and Oppo are headquartered in Shenzhen, which is situated near the border with Hong Kong. Foxconn says it's stopping production at its Longhua and Guanlan factories until further notice, Nikkei reports; the Shenzhen base is Foxconn's second largest in the country.

"The operation of Foxconn in Shenzhen China has been suspended from March 14 onwards in compliance with the local government's new COVID-19 policy," the company told CNBC in an email. "The date of factory resumption is to be advised by the local government."

China is grappling with its worst Covid outbreak since the original outbreak in Wuhan in early 2020 as cases surge across the country. On Sunday, it reported 2,125 local Covid-19 cases across 58 cities, according to the National Health Commission (NHC).

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