Foxconn manufactures smartphones for many global brands, including Apple.
As you know, many enterprises in China began to resume work immediately after the Chinese New Year due to an outbreak of coronavirus. More specifically, they were ordered to remain closed for another week, until February 10th.
Taiwanese company Foxconn plans to gradually begin to resume work in factories in China next week, but it will take one to two weeks to restore full production. This was reported to Reuters by a source directly familiar with the situation.
Foxconn, which manufactures smartphones for global manufacturers, including Apple, has already submitted requests for refurbishment of plants to Chinese government agencies, but even if these requests are approved, a full renewal until the end of February will be impossible due to various travel restrictions. For Foxconn, this is critical because its production is heavily dependent on migrant workers from poorer regions of the country. In accordance with an internal document at the disposal of Reuters, the company expects to maximize the use of local workers, providing time off to those who cannot return to work due to restrictions on movement around the country.
Delays in resuming operations may affect the global supply chain and affect the shipment of finished products to Foxconn customers, including Apple.
According to the informant, the shutdown of the plant will reduce Foxconn’s profit in 2020, but how much is still unknown.