One of Apple’s top suppliers, Foxconn, is dealing with a significant interruption at its largest iPhone assembly plant in China as worried employees are said to be evacuating the location, according to social media footage.
The Taiwanese corporation is attempting to contain an outbreak of Covid at its campus in the city of Zhengzhou, in central China.
The migration illustrates how the nation’s strict zero-Covid policy is affecting overseas business and is putting a significant strain on Foxconn just before the start of the crucial Christmas shopping season.
“[We] fully understand your eagerness to go back home,” Foxconn told its employees over the weekend, according to a post on Zhengzhou government’s official WeChat account.
“For employees who voluntarily stay in the company’s factory area, the port government and the company will jointly ensure everyone’s…health and safety,” it added.
Reports had it that, Zhengzhou could jeopardize Apple and Foxconn’s output in the coming weeks. Ivan Lam, senior research analyst at Counterpoint, estimated that between 10% and 30% of iPhone 14 production could be affected in the near term if the situation did not stabilize.
The Zhengzhou campus is the world’s biggest iPhone factory and typically accounts for as much as 85% of iPhone assembly
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