Several companies in the electonics hubs of Eastern China are suspending operations in order to comply with COVID-related restrictions and curbs. A report in Bloomberg has said that Apple suppliers Pegatron and MacBook maker Quanta Computer Inc have also halted production in Eastern China, spelling more trouble for an already fragile global supply chain. The report said that more 30 Taiwanese companies have halted production in total for the same reason.
The Bloomberg report said that at least 30 other companies have suspended output near Kunshan until April 19, according to filings with Taiwan’s Stock Exchange. Some companies have said that the effect on their finances is still unknown, while others don’t expect a major impact. Kunshan, a city in the Eastern part of China near Shanghai hosts many manufacturers like Apple suppliers Pegatron, Luxshare Precision, and more. These companies make parts for electronics like PCs and smartphones, with many of the components critical of their global customers.
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Pegatron, another Apple supplier suspended operations on Tuesday, April 12 in both Shanghai and Kunshan amid another surge in COVID-19 cases in the region. The Bloomberg report said that disruptions to local manufacturing are set to worsen the logistical barriers of global companies that are already overcoming a massive shortage in semiconductors and a tight supply chain. Gaming consoles, server computers, and electric vehicles are some of the product categories that are facing further supply chain challenges, the report further said.
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Apple earlier this month started assembling the iPhone 13 in India. Apple iPhone 13 is being produced through manufacturing partners like Foxconn, which is using its Chennai plant for making iPhone 13 in India. Apple was quoted in a report saying, “We are excited to begin making iPhone 13…right here in India for our local customers."
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