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Taiwan’s Pegatron suspends iPhone assembly at 2 Chinese plants amid COVID restrictions

Company hopes for quick resumption of activities, but dependent on local government decisions

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Local COVID restrictions force Pegatron to suspend iPhone production at plants in Shanghai and Kunshan. 

Local COVID restrictions force Pegatron to suspend iPhone production at plants in Shanghai and Kunshan.  (AP photo)

TAIPEI (Taiwan News) — Pegatron Corporation confirmed Tuesday (April 12) that it has suspended the production of Apple iPhones at factories in Shanghai and Kunshan amid the Chinese government’s tough COVID-19 restrictions.

The Taipei-based company expressed hope its two subsidiaries, Protek (Shanghai) Limited and Pegaglobe (Kunshan) Co., will soon be able to resume production, but a precise timetable can only be announced based on local government measures, CNA reported.

Pegatron said its subsidiaries are cooperating with the local authorities to protect the safety and health of their employees and are in close contact with customers and suppliers. The company is also continuing to evaluate the financial impact of the suspensions.

Analysts estimate that the assembly of iPhones in China might return to normal by late April or early May. If the lockdowns continue, consumer confidence may take a hit, causing decreased iPhone sales in the second half of the year, the report said.

Pegatron is reportedly one of the main manufacturers of recent iPhone 13 models, together with Taiwanese competitor Foxconn Technology.