The 86 cases of coronavirus infection detected in Shenzhen on Sunday were enough for authorities to announce a lockdown until March 20 across the Chinese city of 17.6 million. Foxconn has two major facilities here, one of which assembles the iPhone. These factories also had to stop working, but have already resumed work today while maintaining the precautionary measures.
As far as noted Bloombergwe can only speak of a partial resumption of work at Foxconn companies in Shenzhen, while only those employees who live in service dormitories in close proximity to the production buildings are allowed to work. It’s a closed ecosystem that allows Foxconn to resume work from companies under lockdown conditions – by and large, employees will not leave their territory. Anyone who was allowed to work was subjected to a PCR test.
As noted yesterday, even a prolonged outage at Foxconn’s Shenzhen facility would not have had a major impact on global iPhone assembly. First, the local factory is responsible for about 20% of Apple’s annual manufacturing program. Second, Foxconn has taken measures to distribute part of the orders to reduce risks related to the coronavirus outbreak in Shenzhen. Foxconn’s two facilities in the city have nearly 200,000 employees. The company produces the main part of the iPhone in the central part of China, in the city of Zhengzhou.