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Taiwan iPhone Maker Pegatron Halts Work at Two China Plants

Taiwan’s Pegatron, which assembles iPhones for Apple, has suspended operations at its Shanghai and Kunshan plants in China due to moves to control the spread of Covid-19, it said on Tuesday


iPhone supplier
Pegatron has sought to expand its footprint in Asia and North America. Photo: Reuters

 

Taiwan’s Pegatron Corp, which assembles iPhones for Apple, has suspended operations at its Shanghai and Kunshan plants in China due to government measures to control the spread of Covid-19, it said on Tuesday.

In a stock exchange filing, Pegatron said the resumption of work depended on the two plants being given clearance by the government.

It added it would maintain close contact with customers and suppliers and would “actively cooperate” with local governments to resume work as soon as possible.

The company will also continuously evaluate the impact of the suspension on its finances, it added, without giving details.

The far larger Taiwanese firm Foxconn, the world’s largest contract electronics maker, also assembles iPhones in China. Its operations in the southern city of Shenzhen were disrupted last month by a Covid outbreak there.

China has put Shanghai and neighbouring Kunshan under a tight lockdown as it seeks to stop an outbreak of the virus, although Shanghai authorities on Tuesday took tentative steps towards easing amid worries over the economic impact of the curbs.

 

• Reuters with additional editing by Jim Pollard

 

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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years.