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Apple supplier Foxconn resumes production in Shenzhen

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Foxconn workers at the Longhua assembly line, Shenzhen. According to reports, the company employed overtime students at Zhengzhou’s iPhone factory.

Bloomberg | Bloomberg | Getty Images

Foxconn is a significant assembler Apple’siPhones has announced that production was partially restored in Shenzhen, China, Wednesday.

The company said earlier this week that it had paused operationsAfter an increase in Covid-19-related cases, Shenzhen was forced to close its doors.

Foxconn stated that it can only resume production at campuses with both production and employee housing.

According to the Taiwanese company, a closed loop process was implemented at these campuses in accordance with policies set forth by Shenzhen Government.

Foxconn spokeswoman for CNBC Wednesday, stating that “In applying the closed-loop management system within Shenzhen Campus and in implementing health measures to employees who live there, some operations were able restarted and some production is taking place at these campuses.”

The company would continue its close cooperation with authorities to monitor these activities very closely, they said.

Foxconn’s main facilities in Shenzhen are in Longhua Town and Guanlan but the company did not specify exactly where production will resume or on what kind of products.

Apple’s announcement of its shutdown on Monday was just days prior to the earlier week’s shutdown. latest slate of new productsThere are many options, from a cheap iPhone to a premium iPhone. expected to outperform in Asia.

Foxconn manufactures some iPhones, iPads, and Macs in Shenzhen. According to Monday’s Bank of America research, nearly half of iPhones are made in Henan, China. Apple could increase production in Henan to recover some of these losses.

The firm’s analysts stated that Apple/Foxconn could relocate production in the short-term provided they do not lock down for a longer period.

An increase in shutdowns could cause ripple effects on other components, which can lead to a reduction in production.

Apple has not yet responded to CNBC’s request.

—CNBC’s Jessica Bursztynsky Contributed to the report.

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