Foxconn aims to resume half of output in virus-hit China by month-end -source (updated)
12/02/2020 04:17
(Adds comment, detail, share price)
By Yimou Lee
TAIPEI, Feb 12 (Reuters) - Taiwan's Foxconn 2317.TW hopes
to resume half of its production in China by month-end, a source
told Reuters on Wednesday, as the supplier to tech giant Apple
AAPL.O and others reopens plants shut over a coronavirus
outbreak.
The world's largest contract electronics maker also aims to
resume 80% of production in China in March, added the source,
who has direct knowledge of the matter, citing internal targets
set by Chairman Liu Young-Way.
Foxconn's reopenings after the Lunar New Year holiday were
delayed by the rapid spread of the virus in China, which has
killed more than 1,100 people, as the World Health Organization
warned against a global threat potentially worse than terrorism.
urn:newsml:reuters.com:*:nB9N28N01J
"Chairman Liu hopes by end of February the production could
reach 50%," said the person, who declined to be identified in
the absence of authorisation to speak publicly.
"Shipments will be affected, but it's too early to give an
exact number. We might still have a chance to make it with
overtime, but we also need to monitor consumer sentiment to come
for the end products," the source added.
The reference was to electronics, including smartphones.
Foxconn did not immediately respond to email and telephone
calls to seek comment.
Foxconn got the green light this week to reopen major plants
in China, and its plant in the eastern city of Kunshan was also
approved on Tuesday to resume production, an internal document
reviewed by Reuters showed.
But just about a tenth of the workforce had returned to two
key plants in southern Shenzhen and central Zhengzhou as of
Monday, a source told Reuters. urn:newsml:reuters.com:*:nL4N2AA0F1
The two plants make up the bulk of Foxconn's assembly lines
for Apple's iPhones and further delays to production after the
enforced closures could hit global shipments. urn:newsml:reuters.com:*:nL8N2A42ES
Apple estimated first-quarter revenue in a wider range than
usual to factor in the virus uncertainty. urn:newsml:reuters.com:*:nL1N29X1VG
On Monday, Foxconn reported a drop of 12% in revenue in
January from a year ago, to T$364.6 billion ($12 billion). It
did not give details.
Shares of Foxconn, formally Hon Hai Precision Industry Co
Ltd, gained 1.6% in Wednesday trade, outperforming a gain of
0.8% in the benchmark .TWII .
They have lost more than 8% since the market reopened after
the holiday break.
(Reporting by Yimou Lee and Taipei newsroom; Editing by Shri
Navaratnam and Clarence Fernandez)
((yimou.lee@thomsonreuters.com; +886-2-8729-5122;))