Major Apple supplier Foxconn has suspended its operations in the Chinese tech hub of Shenzhen, the company said on Monday, following Beijing's lockdown of the city. "The operation of Foxconn in Shenzhen, China has been suspended from March 14 onwards in compliance with the local government's new COVID-19 policy," the Taiwanese company said in a statement. 

Multiple Chinese provinces and cities have tightened restrictions in line with Beijing’s zero-tolerance goal of suppressing contagion as quickly as possible, among them the southern Chinese tech hub of Shenzhen.

Shenzhen, China’s Silicon Valley, is carrying out mass testing after dozens of new local cases were recorded. Officials have suspended public transport and urged people to work at home this week as much as possible.

China has reported more local symptomatic COVID-19 cases so far this year than it recorded in all of 2021.

Foxconn, formally known as Hon Hai Precision Industry Co Ltd, said its Shenzhen operations would be suspended until further notice, adding it would deploy backup plants to reduce disruption.

Two sources familiar with the matter told Reuters that Foxconn and its subsidiaries’ operations in Shenzhen would be suspended for the first half of the week.

One of the people said the government was allowing companies to operate if they could create a “closed management” system where employees would live and work in a bubble. Such a system was in place during the Beijing Winter Olympics.

Other Taiwan companies which said they had suspended Shenzhen operations included chip substrate and printed circuit board maker Unimicron Technology Corp, which also supplies Apple and Intel, and flexible printed circuit board maker Sunflex Technology Co Ltd.

Image source: Reuters