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Apple supplier, Foxconn, allowed to continue production in closed loop setting

China is allowing Foxconn to continue operations under strict conditions.

Reuters reports the Apple supplier can continue operations in a “closed loop” or bubbled environment, which means employees live and work within one area.

“Some operations have been able to restart, and some production is being carried out,” the company said in a statement. “This process, which can only be done on campuses that include both employee housing and production facilities, adheres to strict industry guidelines and close-loop management policies issued by the Shenzhen government.”

The company previously announced it was suspending its operations in Shenzhen due to an uptake of COVID cases.

China has a strict zero-tolerance COVID policy, and other cities have implemented similar shutdowns as the country experienced the largest outbreak in two years.

Shenzhen serves as the country’s technological hub and concerns were raised its shutdown could mean impacts to global markets.

China previously utilized the closed-loop environment during the Beijing Winter Olympics, where athletes and personnel were separated from the public through designated transportation methods, ensuring they had to contact.

Image credit: Shutterstock

Source: Reuters

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Mobile Syrup

Lockdown of China’s Silicon Valley could mean trouble for worldwide electronics market

The recent lockdown of Shenzhen means trouble for electronic supplies around the globe.

The city located in southeastern China is known as a technology hub and supplies electronics for many notable brands, including Apple.

Earlier this week, the city was put on lockdown as cases around China saw a dramatic incline, in line with the county’s zero-tolerance COVID policy. According to Reuters, it’s the largest outbreak the country has seen in two years.

Foxconn confirmed it has suspended operations in the city for at least the first half of the week. The company makes electronics for several companies and is a major supplier of iPhones.

Reuters reports Unimicron Technology Corp, with customers including Apple and Intel, has also suspended operations at this time. Sunflex Technology, a flexible printed circuit board maker, has followed suite. 

The government may allow companies to open shop again if they can create a bubble where employees work and live, similar to the experience during the Winter Olympics, the publication reports.

Mass testing is happening in the city at this time.

Image credit: Shutterstock

Source: Reuters