Foxconn's China iPhone factory in disarray due to Covid outbreak: Report

Foxconn's factory in Zhengzhou in central China is the world's largest assembly plant for Apple's iPhones

As China's zero-Covid policy wrecks havoc in the world's biggest manufacturing hub, workers at Foxconn, a significant producer of Apple iPhones, are struggling for food and medical supplies, reported the Financial Times. 

 

Chinese censors took down social media videos showing the plight of workers at the Foxconn-run factory in Zhengzhou in central China. Workers could be seen requesting for supplies in these videos. This assembly unit operated by the Taiwanese firm, officially known as Hon Hai Technology Group, is the world's largest assembly plant for Apple's iPhones.

 

According to two employees who spoke to the Financial Times, the factory did not provide food regularly to workers who were in quarantine. 

 

With more than 95 per cent of iPhones made in China, the manufacturing disruptions reflect investor concerns about Apple's supply chain risk in various parts of the world, including India, which is already seeing a shortage of iPhone 14 in the market. Even though Apple has sought to diversify its supply chain, including starting to assemble iPhone 14 in India, the company still relies massively on China for most of its iPhone production. 

 

"If Apple isn't building a plan B, it could be an absolutely historic mistake," FT quoted Manuel Muñiz, dean of IE School of Global and Public Affairs in Madrid.

 

In a statement released on Thursday, Foxconn said that only "a small number of employees" had been affected and production on the Zhengzhou campus remained "relatively stable". However, Apple has not responded to this claim of Foxconn yet. 

 

Stringent Covid restrictions in China

 

With its constant lockdowns, stringent quarantines, and widespread testing as part of its effort to eradicate the coronavirus, China stands out from the rest of the globe in tackling the pandemic. The administration of President Xi Jinping has yet to indicate that this stance of his government will alter, even though the policy has hurt economic growth. Over the last three days, Zhengzhou, the capital of east-central China's Henan province, reported 69 new Covid-19 cases. 

 

According to several employees, the actual number of affected people in the Foxconn factory in Zhengzhou, which has about 300,000 workers, was larger than the official estimates. 

 

Since workers returned from a week-long national holiday that ended on October 7, the facility has changed to a "closed-loop operation", one Foxconn employee who requested anonymity told FT.