On Monday, Foxconn, one of the important foundries of Apple, said its Kunshan subsidiary has suspended its operations due to pandemic prevention and control measures put into place. However, the impact of the shutdown is limited because Foxconn had already shifted production to other places.
The company said that its Foxconn Electronics Industry Development (Kunshan) Co., Ltd., will remain closed until the government approves its reopening. The Kunshan factory mainly produces data transmission equipment and connectors.
In a statement, Foxconn clarified how the shutdown is affecting the company, saying that they had “reassigned production to the standby plant, and the main products are stored in overseas delivery warehouses,” which, the company points out, means that “Foxconn now has sufficient inventory, and its business is only impacted to limited degree.”
Whether iPhone production would be affected by the shutdown, one person familiar with the matter said, “Kunshan factory is not a major supplier of Apple products. Foxconn can reassign production to other factories. No impact on iPhone production has yet been discovered.”
In addition to factories in the Yangtze River Delta region, Foxconn has factories in Zhengzhou and Shenzhen. Shenzhen is home to two major factories, Longhua and Guanlan, which are mainly the strongholds for the development and trial production of iPhone components, while the phone’s assembly is mainly done in Henan Province, with more than 90 production lines and about 350,000 workers.
Foxconn suspended the operation of its Shenzhen factories in mid-March as required by local authorities but has basically resumed normal working order, production and operation.