Power outages in China’s Sichuan Province would not affect the operations of Apple Inc’s iPhone and computer assemblers, such as Hon Hai Precision Industry Co (鴻海精密) and Pegatron Corp (和碩), as their products are primarily made in other manufacturing sites in China, Fubon Securities Investment Services Co (富邦投顧) said yesterday.
Hon Hai assembles iPhones in Zhengzhou in Henan Province, while Pegatron and Luxshare Precision Industry Co (立訊精密) make iPhones in Shanghai and Kunshan in Jiangsu Province, Fubon Securities said in a report.
Apple’s MacBook laptops are assembled by Hon Hai in Zhengzhou and by Quanta Computer Inc (廣達) in Shanghai, while its iMac desktop computers are made by Quanta in Shanghai, the report said.
“As the manufacturing hubs for those products are not located in Sichuan, we believe the new iPhone 14 series and MacBooks equipped with M2 chips will hit the market as scheduled,” Fubon Securities analysts Arthur Liao (廖顯毅) and Rita Tung (董姵君) said in the report.
Hon Hai is the major manufacturer of the new iPhone 14 series with an order allocation of more than 70 percent, Fubon Securities said, adding that Apple is set to unveil new-generation iPhones next month.
The Sichuan provincial government would suspend the supply of power to industrial customers from Monday to Saturday to ensure grid stability amid a heat wave that has engulfed southern China and stretched power grids to the limit, Chinese media reported on Monday.
The provincial government would prioritize supplying power for residential use, reports said.
Hon Hai, known as Foxconn Technology Group (富士康科技集團) outside of Taiwan, yesterday said that the power cuts would have only a limited effects on its operations in Chengdu in Sichuan Province.
The company’s Chengdu plant belongs to its B business group, which was established in 2010 and manufactures products such as wearables, mobile devices, and Internet of Things and other devices, its WeChat account showed.
TF International Securities Group Co (天風國際證券) analyst Kuo Ming-chi (郭明錤) posted on Twitter that power rationing in Sichuan could affect iPad assembly plants, including Hon Hai’s Chengdu facility and Compal Electronics Inc’s (仁寶電腦) factory in Chongqing.
However, Kuo said the power restrictions would have only a limited effect on the companies’ production if they are lifted on Saturday as scheduled.
The flexible production schedule of iPad plants would also help reduce the effect of power outages, he said.
Kuo said it was worth observing whether similar outages could occur in the next few months and whether they would affect Apple’s new product shipments during the peak season.
Asked for comment, Compal said it has yet to obtain the necessary information to give a clear response.
CHAOS: Iranians took to the streets playing celebratory music after reports of Khamenei’s death on Saturday, while mourners also gathered in Tehran yesterday Iranian Supreme Leader Ayatollah Ali Khamenei was killed in a major attack on Iran launched by Israel and the US, throwing the future of the Islamic republic into doubt and raising the risk of regional instability. Iranian state television and the state-run IRNA news agency announced the 86-year-old’s death early yesterday. US President Donald Trump said it gave Iranians their “greatest chance” to “take back” their country. The announcements came after a joint US and Israeli aerial bombardment that targeted Iranian military and governmental sites. Trump said the “heavy and pinpoint bombing” would continue through the week or as long
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State-run CPC Corp, Taiwan (CPC, 台灣中油) yesterday said that it had confirmed on Saturday night with its liquefied natural gas (LNG) and crude oil suppliers that shipments are proceeding as scheduled and that domestic supplies remain unaffected. The CPC yesterday announced the gasoline and diesel prices will rise by NT$0.2 and NT$0.4 per liter, respectively, starting Monday, citing Middle East tensions and blizzards in the eastern United States. CPC also iterated it has been reducing the proportion of crude oil imports from the Middle East and diversifying its supply sources in the past few years in response to geopolitical risks, expanding
STRAIT OF HORMUZ: In the case of a prolonged blockade by Iran, Taiwan would look to sources of LNG outside the Middle East, including Australia and the US Taiwan would not have to ration power due to a shortage of natural gas, Minister of Economic Affairs Kung Ming-hsin (龔明鑫) said yesterday, after reports that the Strait of Hormuz was closed amid the conflict in the Middle East. The government has secured liquefied natural gas (LNG) supplies for this month and contingency measures are in place if the conflict extends into next month, Kung told lawmakers. Saying that 25 percent of Taiwan’s natural gas supplies are from Qatar, Chinese Nationalist Party (KMT) caucus secretary-general Lin Pei-hsiang (林沛祥) asked about the situation in light of the conflict. There would be “no problems” with
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