Foxconn Interconnect Technology Ltd (FIT, 鴻騰精密), a subsidiary of Taiwanese manufacturing giant Hon Hai Precision Industry Co (鴻海精密), yesterday confirmed that it halted production at its factory in Kunshan, China, after employees tested positive for COVID-19.
The company, which makes electrical connectors and data transmission equipment at the Kunshan plant, said it does not expect the suspension to significantly affect the company’s ability to fill customer orders.
It confirmed the temporary closure of its production lines in Kunshan after the South China Morning Post reported earlier in the day that two Hon Hai plants in the city had been closed since Wednesday, as some of the workers had tested positive for COVID-19.
Photo: Nicky Loh, Reuters
As a result of the positive tests, all employees at the two factories have been confined to their dormitories, the report said.
Hon Hai, which is known as Foxconn Technology Group (富士康科技集團) outside of Taiwan and is a major supplier to Apple Inc, was among 60 manufacturers listed in Kunshan on Tuesday last week as “COVID-19 free” enterprises that were permitted to continue production amid a sharp increase in COVID-19 cases there.
FIT said it would have to wait for approval from authorities before resuming operations.
The company’s overseas operations are unlikely to be significantly affected, as it has assigned capacity from plants in other cities to maintain inventory levels, it said.
Although FIT’s Kunshan plant has been closed temporarily, Hon Hai’s other production facilities in the city reportedly are operating normally, analysts said.
In addition, Hon Hai’s two major plants in China — in Henan and Guangdong provinces — are still operating at full capacity, rolling out iPhones for Apple, analysts added.
In Henan, officials locked down the Zhengzhou Airport Economy Zone that hosts Hon Hai’s “iPhone City” campus on Thursday for an indefinite period, a government notice viewed by Bloomberg News said.
Residents are not allowed to leave their homes unless it is considered necessary during the lockdown, the notice said, but workers for key businesses can commute with permits.
Passenger and cargo flights to and from the central Chinese city are operating normally, the Zhengzhou Xinzheng International Airport said on Saturday in an announcement on its WeChat account.
Hon Hai relies on the airport to ship iPhones internationally.
Apple suppliers in China have been affected to varying degrees by China’s pursuit of its “zero COVID-19” policy, and the effect has remained limited, given it is traditionally the slow season and demand for consumer electronics is in a trough.
Pegatron Corp (和碩) suspended operations at its iPhone plants in Shanghai and Kunshan, while Apple laptop maker Quanta Computer Inc (廣達電腦) only recently resumed some production after halting work for a few days in Shanghai.
Additional reporting by Bloomberg
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