What you need to know
- Foxconn says that its largest iPhone plant is operating normally.
- However, the company is bringing back mandatory COAVID tests to comply with local laws.
- It means there is now a risk of production coming to a halt.
The world's largest iPhone factory risks production disruption as staff face mandatory COVID testing.
As reported by Bloomberg, tens of thousands of staff will undergo mandatory tests on Thursday because of a local authority order compelling testing for areas that include the plant, as well as surrounding parts of the city.
As the report notes, positive tests could spell disaster for the site, with Chinese officials happy to lock down production in other areas. The issue has already hampered production at Apple suppliers in Shanghai and Kunshan, with three producers including iPhone assembler Pegatron putting their production on hold.
In a statement, the company said it was complying with local laws and that operations in Zhengzhou "are normal right now."
Lockdowns are also impacting iPhone maker Pegatron, however, Ming-Chi Kuo says Apple has enough to supply of the iPhone SE because the device is seeing "lackluster" demand.
Reports of potential disruption are much more likely to draw the eye of Apple, supply chain insider and analyst Ming-Chi Kuo said Thursday that the potential disruption "has become a structural risk that Apple and investors can't ignore in the foreseeable future."
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