March 16, 2022
J.P. Morgan analysts have assured that the decision to close Foxconn’s plant in Shenzhen will not have a big impact on iPhone Production.
“We believe the impact from the Shenzhen lockdown on iPhone EMS build should be limited (~10% maximum of global iPhone production), due to low season and small production exposure to Shenzhen,” analyst Gokul Hariharan wrote in a note.
The analysts further stated that the assembly plant in Shenzhen only accounts for less than 20% of the total iPhone Production capacity for Hon Hai.
The vast majority of plants that account for major production are located in Zhengzhou, an industrial and transport hub.
Hon Hai Precision Industry, known as Foxconn is a key Apple supplier. The company was forced to shut down its plants in Shenzhen temporarily in a bid to contain the COVID outbreak.
Analysts believe Shenzhen’s lockdown won’t have a big impact on semiconductor productions. They however warned that lockdowns in the Shanghai region could be more disruptive.
For more information, read the original story in Reuters.
