Apple supply chain in China hit by lockdowns as key partner suspends production in Shanghai, Kunshan
- Pegatron Corp has stopped making computers, communication devices and consumer electronics for branded vendors in Kunshan
- An Omicron outbreak has caused widespread interruptions to tech manufacturing activities in the Yangtze River Delta
Apple’s supply chain is facing extended disruptions caused by China’s strict Covid-19 control measures, after the US tech giant's second-largest contract manufacturing partner suspended production at key factories in Shanghai and nearby Kunshan, a city in eastern Jiangsu province.
Pegatron Corp, a major electronics contract manufacturing service provider for Apple, stopped making computers, communication devices and consumer electronics for branded vendors in Kunshan since the city entered a lockdown a week ago.
The Taiwanese company’s assembly lines in Shanghai, where a sweeping lockdown has been in place for more than two weeks, also halted operations, a Pegatron spokeswoman confirmed on Tuesday.
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The company said it has been communicating with customers and vendors, and actively cooperating with local governments to resume operations as soon as possible. It is also continuously evaluating the business and financial impact of the lockdowns.
Apple did not immediately respond to a request for comment.
An Omicron outbreak in Shanghai and neighbouring industrial bases has caused widespread interruptions to manufacturing activities in the Yangtze River Delta.
Within Taiwanese companies alone, 161 have paused production in Shanghai and Kunshan, Taiwan’s Financial Supervisory Commission said on Monday.