Foxconn suspends production at two factories in Kunshan amid a surge in Omicron cases

Apple supplier Foxconn Technology Group has suspended operation at its factories in Kunshan as the Covid-19 outbreak in neighbouring Shanghai continues.

The suspension of the operation started on April 20 after new Covid-19 cases were reported at the two plants, employees of the factories have been ordered to stay at dormitories inside those campuses, and be tested everyday for the Omicron variant of Covid-19.

Located in the eastern coastal province of Jiangsu, Kunshan is home to many factories operate by Taiwan-based electronics companies. Foxconn run four plants in the city, the affected plants are located at Dianfa and Fuhong in the northern part of Kunshan.

Currently, Kunshan authorities is expected to ease travel restrictions and allow manufacturing activities to resume in the city, so Foxconn factories could resume soon in the city.

Kunshan, which has a population of 2.1 million, is about 51 kilometres away from neighbouring Shanghai. Kuaishan’s officials has imposed lockdown since the first week of April to control the spread of Omicron variant.

 Companies that have halted production include the PCB manufacturers Elite Material, Unimicron and WUS Printed Circuit, OEMs Wistron Corporation and Pegatron Corporation.

The suspension of the Foxconn factories is another major hit to Apple supply chain after two other Apple suppliers, Pegatron Corporation and Compal Electronics halted production at their factories in Kunshan.

In March, Foxconn suspended operation at its factories in Shenzhen after a surge in Covid-19 cases led the city to lockdown in recent days.

Foxconn set up its first factory in Kunshan in 1993 to expand business operation in the Yangtze River Delta, an economic zone that encompass areas of Shanghai, Jiangsu, and the eastern coastal province of Zhejiang.