Apple assembler Foxconn said it faces logistics disruptions and other challenges in China stemming from the Chinese Communist Party’s stringent COVID-19 measures.
Most of Foxconn’s factories in China have been running under a bubble-like system, said Chairman Young Liu on Thursday. The Taiwan-based contract manufacturer has relied on its supply-chain management expertise to keep production going even during Covid outbreaks, he said.
Apple Inc., Foxconn’s biggest customer, said last month that the Covid outbreaks in China threaten to hinder sales by as much as $8 billion in the current quarter. Chief Executive Tim Cook said Apple’s supply constraints mainly stemmed from Shanghai, much of which has been under a lockdown for more than a month, and the nearby regions, where logistics have been disrupted.
Foxconn runs Apple’s biggest iPhone production site, located in China’s central Henan province. There, Foxconn has been following a closed-loop system to keep tens of thousands of workers and other staff in or around the factory, a system that has become the standard among manufacturers in China to continue manufacturing during Covid outbreaks.
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[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]