It’s two steps forward and one step back with manufacturing, production, and the COVID-19 pandemic.
Full-on COVID-19 precautions have been reinstated back at Apple supplier Foxconn, at the request of the city government in Shenzhen, China. The company has been asked to return to closed-loop production, wherein workers live in dormitory accommodation on the campus, and are prohibited from physical contact with anyone outside the factory complex – including family members.
Although the company is downplaying the measure, this does raised concerns as to a repetition of Shanghai-style lockdowns that could create extremely difficult conditions for workers and residents alike while significantly disrupting production.
Unlike most countries around the world, China is attempting to completely eradicate COVID-19 from within its borders. Even a handful of infections leads to highly restrictive lockdowns, with most places of work and schools closed. Even food shopping is controlled.
The “closed-loop” production method includes the following aspects:
- Companies provide dormitory accommodation within the overall campus.
- Workers remain on campus for extended periods, typically one month.
- No one enters or leaves the plant without an on-the-spot negative test.
- Anyone testing positive on attempted entry is sent to a quarantine center.
The method has also been exceptionally hard on workers, and led to a worker revolt at a Quanta plant in Shanghai earlier this year.
Bloomberg has reported that the initial lockdown is set for seven days, and impacts 100 companies:
China has forced some of its biggest companies, including iPhone maker Foxconn and oil producer CNOOC Ltd., to operate within a “closed loop” restricted system for seven days as the southern manufacturing hub of Shenzhen battles its latest Covid outbreak.
The city government has asked its 100 biggest companies, including automaker BYD Co., networking giants Huawei Technologies Co. and ZTE Corp. and drone-maker DJI to restrict operations only to employees living within a closed loop or bubble, with little to no contact with people beyond their plants or offices. Authorities also asked companies to reduce unnecessary interaction between non-manufacturing staff and factory floors to reduce infection, according to a Shenzhen government notice seen by Bloomberg News […]
A Foxconn spokesperson stated that operations in Shenzhen sites “remained normal.”
However, there are fears that the time period could be significantly extended if infections increase.
Previous lockdowns saw iPhone 14 work fall behind schedule, with the iPhone 14 Max reported to be hardest hit.
Stay tuned for additional details as they become available.