TAIPEI (Reuters). Taiwan’s Pegatron Corp (NASDAQ:), which assembles iPhones in China for Apple Inc, said Tuesday that operations had been suspended at the Kunshan (Shanghai) plants due to China’s COVID-19 protocol.

China has placed Shanghai under tight control since March. Kunshan, a neighboring country has increased its controls to stop the largest COVID-19 epidemic in China since it was first discovered late 2019.

After the devastating pandemic, global businesses, including phone and chip manufacturers, were heavily dependent on China, Southeast Asia and Southeast Asia to produce their products. Since then, they have diversified their supply chains.

Taiwan’s Financial Supervisory Commission reported on April 7 that 161 Taiwanese businesses had stopped operating in Shanghai or Kunshan. 41 of those companies make electronics.

Analyst Ming-Chi Kuo from TF International Securities stated that “In the worst-case scenario,” complete resumption may not be possible before late April or early mai.” He added that Apple’s strong supply chain and relationships with the Chinese government could minimize the effects.

Apple has not yet responded to my request for comment.

TrendForce reports that manufacturers have to rely heavily on their inventory to cover staffing, logistics, and transportation needs.

According to TrendForce, an increase in materials demand and shipments after lockdowns have been lifted may gridlock customs officials, leading to delivery delays.

The demand for iPhones may also decline as more people spend their cash on everyday necessities, instead of buying phones and other gadgets.

Pegatron indicated that the government had to give the clearance for the two plants before work could resume.

The company stated that it would maintain contact with its suppliers and customers, and will “actively work with” local governments in order to resume work as soon and as efficiently as possible.

Foxconn in Taiwan, which is the largest manufacturer of contract electronic components worldwide, also makes iPhones in China. The COVID-19 epidemic in China caused disruption to its operations last month.