iPhone maker Pegatron suspends operations at two China plants

Taiwan’s Pegatron, which assembles iPhones for Apple, has suspended operations at its Shanghai and Kunshan plants in China due to the government’s strict COVID-19 protocols.
Pegatron production facilityCompanies, from phone to chip makers, are dependent on China and Southeast Asia for production and have been diversifying their supply chains after the pandemic caused havoc, Reuters news report said.

161 listed Taiwanese companies reported their operations in Shanghai and Kunshan have stopped and 41 of them make electronics, according to Taiwan’s Financial Supervisory Commission.

“In the best-case scenario, complete resumption of production may not be possible until late April or early May,” analyst Ming-Chi Kuo with TF International Securities said. “Apple could minimize the impact due to its strong supply chain and relationship with the Chinese government.”

Pegatron said the resumption of work depended on the two plants being given clearance by the government.

Pegatron will maintain close contact with customers and suppliers and actively cooperate with local governments to resume work as soon as possible.

Taiwanese firm Foxconn, the world’s largest contract electronics maker, also assembles iPhones in China. Its operations in the southern city of Shenzhen were disrupted last month by a COVID-19 outbreak there.