Lockdown in Shenzhen: Suppliers of Apple & Co close factories
A lockdown has been imposed on the Chinese metropolis of Shenzhen. The measures against the corona virus have an impact on numerous tech companies.
Unlike here in Germany, where the pandemic was declared over despite rising infection figures, the Chinese government is still relying on a no-covid strategy. As part of this strategy, it has imposed a lockdown on Shenzhen, a city of 17 million people. This also affects over 30 factories of suppliers from the tech industry, of which the iPhone production at Foxconn is the most prominent example.
Over 30 factories affected
In Shenzhen, bus and subway services have been largely suspended. People are expected to work from home and are not allowed to leave the city. This effectively means a halt in production for factories in the special economic zone bordering Hong Kong. Foxconn, for example, announced it would stop work at its two factories for the time being. Production of the iPhone 13 is to continue at other locations.
In total, there are said to be over 30 affected factories in the region from the IT sector alone. They not only assemble finished devices, but also produce individual components such as circuit boards or touchscreens for Intel, Samsung and other companies.
Speaking to Reuters, Paul Weedman, of Shenzhen-based consultancy Victure Industrial Co, warns of long-term implications. It is not only about current orders, but also about new orders. No factory can accept these without knowing when they will resume production. In addition, the necessary on-site visits are not possible right now, he said. "The impact is not just for the next two or three weeks, but more like three to six months."
Shenzhen is also home to the headquarters of companies such as Oppo and Huawei. But they should be able to continue working in their home offices with few restrictions. The situation is different at the port, which is the largest port in China. To be able to load containers there, people have to be on site.
The lockdown in Shenzhen is initially scheduled for one week, but can be extended.
When I was but a young student, I'd sit in my friend's living room with all my classmates and play on his SuperNES. Since then I've had the opportunity to test out all the newest technology for you. I've done reviews at Curved, Computer Bild and Netzwelt, and have now arrived at Galaxus.de.