The return of strict lockdown measures in China’s economic hubs has meant many workers who manufacture technology used around the world have been forced to stay at home.
Production lines at factories that make “half of the world’s iPhones” have stalled in recent weeks, he said The times.
In a “blow to Apple,” Taiwanese iPhone maker Pegatron shut down operations in Shanghai and Kunshan last week, he said The guard. The manufacturer of MacBook laptops, Quanta Computer, has also temporarily stopped production.
The Guardian added that Foxconn, the world’s largest maker of iPhones, also “suspended operations in China’s tech hub Shenzhen” last month, but the company said it has “since resumed basic operations.”
It insisted its factory, which employs up to 120,000 people, is operating normally, despite traffic controls being introduced over the weekend preventing vehicles from entering or leaving the city of Zhengzhou.
The company said its factory is “working in tandem with government controls,” The Times continued, with workers able to move around with a permit document, a valid health code and a negative result of a Covid test taken within 48 hours.
Experts warn that the measures will have a drastic impact on the tech industry. Foxconn chairman Liu Young-way told investors in March that Covid is causing “very great uncertainty,” the reported financial times. “2022 is a very challenging year,” he said.
Some firms have tried to limit employee exposure to Covid since cases began to rise last month. “Some employees have been living in their jobs while companies struggle to operate,” reports The Guardian. The German company Bosch has “created a bubble-like environment that keeps workers on site”. The Wall Street Journal called.
Confirmed Covid cases in China surpassed 50,000 last week, according to data global data tracking, most of which were in Shanghai. Currently, people who test positive for Covid have to isolate “mostly in dorm-style mass camps or in hospitals if treatment is needed,” she said The guard.
Local authorities have been instructed to work with companies to minimize disruption to manufacturing operations. The Shanghai Economic and Information Commission said last Friday it had selected 666 companies that could resume production, including Tesla and Volkswagen.
Assurances from companies have done little to calm supply chain experts, who fear the measures “threatening a global tech crisis,” The Times said. The head of Huawei’s consumer and auto divisions warned in a WeChat post last week that the tech industry could suffer “massive losses” as a result Country zero covid policy, The guard reported.
Many manufacturers in Shanghai are “struggling to keep production going because they can’t get supplies” of essential parts used in smartphones, the Wall Street Journal reported. Some truck drivers “avoid transporting goods through Shanghai altogether for fear of being quarantined.”
Supply chain expert Olaf Schatteman told the Financial Times last month: “China is digging a deep hole with its zero-Covid policy.
“As the restrictions hurt suppliers and logistics operations, companies are moving beyond containing the current crisis and toward diversification of manufacturing bases, undermining China as a global supply chain hub,” he said.
The Covid regulations “take a toll on the world’s second-biggest economy in a key year for President Xi Jinping, who is expected to secure a third term in the fall,” he said Reuters.
https://www.theweek.co.uk/news/technology/956462/why-covid-is-threatening-the-worlds-supply-of-iphones Why Covid is threatening the global supply of iPhones