Apple Supplier Foxconn Sees Limited Impact Despite Chinese Plant Lockdown

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Apple’s Taiwanese supplier Foxconn has confirmed that the closure of its Chinese plant will have a limited impact on iPhone production because the company has moved production elsewhere.

“As production has previously been deployed to backup factories, the factory’s main products are located in overseas shipping warehouse, and inventory levels are still sufficient, the impact on the company’s business is limited,” Foxconn said.

The closed Foxconn plant in the Chinese city of Kunshan makes data transmission equipment and connectors. It will remain closed until Chinese authorities approve the reopening.

According to a source familiar with the matter, the company was able to move production to other plants because the plant is not a major supplier of Apple products.

Several regions in China were forced to close as the Chinese government worked to contain the spread of COVID-19.

Automotive, semiconductor and electronics companies were forced to lower their production target for this year because they were unable to continue production.

The sources for this piece include an article in Reuters.

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