Following China’s announcement of a recent COVID-19 lockdown a few days ago that impacted three main factories that produce Apple products, Foxconn has now stated that it’s starting to operate its Zhengzhou factory “normally.” That said, ten of thousands of workers will have to undergo mandatory COVID-19 testing, which could present “a potential risk to a global supply of Apple’s signature device.”
Bloomberg has stated that the primary iPhone production complex has ordered compulsory testing for areas including the plant and adjacent parts of the city by local authorities:
The mass-testing exercise represents a risk because Chinese officials have been quick to lock down areas in the event of positive tests. This week, more than 30 Taiwanese companies including iPhone assembler Pegatron Corp. and Apple laptop maker Quanta Computer Inc. have now halted production in the electronics hubs of eastern China to comply with local Covid-related restrictions, spelling more trouble for an already fragile global tech supply chain.
Although Foxconn is working to catch up with iPhone productions, noted analyst Ming-Chi Kuo has warned that “the potential supply disruption has become a structural risk that Apple and investors can’t ignore in the foreseeable future.”
China has used a zero-tolerance approach to the COVID-19 pandemic including rapid lockdowns, even if only a small number of people test positive. The company offered the following statement:
Foxconn is complying with the local government’s Covid-combating measures. Operations in Zhengzhou are normal right now.
Stay tuned for additional details as they become available.