“China” orders a lockdown around the Foxconn factory, the world's biggest iPhone manufacturer, in Zhengzhou until 9 Nov.
Foxconn employees take shuttle buses to head home from Zhengzhou on Oct. 30Source: VCG/Getty Images
Bloomberg News reported on November 2, 2565 that China ordered the closure of the area around the main factory of Foxconn Technology Group in Zhengzhou, Henan Province, China for 7 days. Days from noon today (2 Nov.) local time. until Wednesday, Nov. 9. Such measures will affect transportation both in and out of the said factory. It is the world's largest iPhone producer.
The local government said in a statement posted on its WeChat account that it was not allowing any vehicles to enter or exit except for essential needs. The announcement came after Zhengzhou reported more COVID-19 cases. That rose to 359 cases on Tuesday, up from 95 the day before.
The sudden action reflects China's Covid Zero approach to eradicating the COVID-19 outbreak. And it is likely to continue disrupting Foxconn's main base of operations. The Taiwanese company, whose main listed company is Hon Hai Precision Industry Co., is fighting the Covid outbreak. This has put the company's 200,000 employees in quarantine. and pushing others to leave the factory, some on foot. The lockdown will disrupt efforts to recruit and bring in new employees. Including the production materials in ships are more complicated. in order to continue operations
Foxconn is working to mitigate any potential disruptions. It has increased wages and prepared backup from other factories in China if production lines are disrupted in Zhengzhou in the past few days.
The lockdown comes at a crucial time for Apple, which launched the iPhone 14 during an unprecedented slump in global electronics demand. Although it does better than other smartphone manufacturers. But the company has canceled plans to increase production of new iPhones this year. After projected demand growth failed to materialize, Apple reported better-than-expected results. But it warned of a slowdown during the long holiday.
Foxconn's Zhengzhou factory is responsible for 80% of production for the iPhone 14 series, with more than 85% of the iPhone 14 Pro, according to Counterpoint senior analyst Ivan Lam. There, it threatens Apple's well-coordinated supply chain. Thousands of components from Europe to Asia are shipped to Zhengzhou. By assembling the device yourself and then send it to other parts of the world.
Foxconn employees take shuttle buses to head home from Zhengzhou on Oct. 30Source: VCG/Getty Images
