Foxconn unit sees limited impact from suspended China plant (updated)

Foxconn Interconnect Technology

25/04/2022 03:48

(Recasts, update throughout)
    TAIPEI, April 25 (Reuters) - Operations at a unit of
Taiwan-based Apple Inc  AAPL.O  supplier Foxconn  2317.TW  in
China's Kunshan city remain suspended because of COVID-19
controls but there is limited impact as it has shifted
production elsewhere, it said on Monday.
    The operations in Kunshan of Foxconn Interconnect Technology
 6088.HK , which makes data transmission equipment and
connectors, will remain closed until the authorities give
permission to restart, it said.
    "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
in a statement.
    A source familiar with the situation said the plant is not a
major supplier for Apple products and the company was able to
shift production to other facilities. 
    "We do not see an impact on iPhones," the person said.
    China has put Shanghai under a tight lockdown since late
March and neighbouring Kunshan has also tightened curbs to
control the country's biggest COVID-19 outbreak since the
coronavirus was discovered in late 2019 in the city of Wuhan.
    That had caused dozens of Taiwanese firms, many making parts
for the semiconductor and electronics industries, to suspend
operations.

 (Reporting by Ben Blanchard and Yimou Lee; Additional reporting
by Rhea Binoy in Bengaluru; Editing by Himani Sarkar, Robert
Birsel)
 ((Rhea.Binoy@thomsonreuters.com;))