Foxconn is one of the major suppliers for Apple. But many of its factories are now being shut down in Shenzhen after the local authorities have imposed a lockdown on the city that has a population of 17.5 million. China is currently facing a massive COVID-19 outbreak that is said to be the worst since the beginning of the pandemic. Orders have been sent out to shut the factories of tech and manufacturing at the borders of Hong Kong.
The residents of the country have been advised to stay indoors while the public transport and restaurants have been shut down after more than 5,000 locally transmitted coronavirus cases have been registered across the country. The sudden increase in the number of cases has been reported in the north-eastern province of Jilin and Shanghai. Many of the neighboring regions have been out in to lockdown while other cities are facing a number of restrictions. Jilin authorities are looking forward to build four new hospitals along with quarantine facilities with 16,000 beds that will help to separate those who are infected with the rest of the population.
Similar steps were taken at the beginning of the pandemic in Wuhan in 2020. The Shenzhen lockdown is expected to last for six days and could also affect the global supply chains that could lead to an inflation in the United States and Europe. As many as 30 companies based in Taiwan, that are responsible for making everything from touch-screen modules and circuit boards have halted the production at the factories in the city. Majority of the manufacturers have said that the plants would remain shut until March 20, 2022 and added that more announcements would be made by the local authorities.
At the same time Foxconn had announced that the company had made some adjustment in production at other plants that would help to minimize the impact of the closures.
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