From Tom's Hardware:
'China's Silicon Valley' Locked Down, Could Affect Supply Chains
The Chinese government has acted decisively today to try and stem a Covid-19 outbreak in Shenzhen, a city of 17.5 million people that borders Hong Kong. The metropolis has now gone into total lockdown, which means people must work at home if they can; otherwise, all businesses must "suspend production." Shenzhen is a well-known tech and finance hub, and impacts on the former may send a shock through the IT industry supply chain.
Commodities analyst Eric Yeung shared the official notice from the Shenzhen Epidemic Prevention and Control Department. He also commented, "RIP US supply chain." The message says that essential organizations delivering medical, food, and fuel supplies may continue, but all non-essential businesses and services must close. The lockdown, started today, has a preliminary end date of March 20. However, the lockdown experience suggests the government can shift the date further into the month.
The Associated Press has more background on the lockdown and the period leading up to China's entire Shenzhen lockdown decision. It notes that 60 new cases of Covid were recorded in Shenzhen on Sunday, and this number was sufficient to nudge the government to implement a complete lockdown.
And from 9TO5 MAC:
Foxconn halts iPhone factory operations in China due to COVID lockdown
Foxconn, one of Apple’s major suppliers, has halted operations in Shenzhen, China, due to a lockdown imposed by the local government following a new COVID-19 outbreak. There, the Taiwanese company has factories responsible for assembling iPhones and other Apple products.
As reported by Bloomberg, the lockdown has led Foxconn to suspend operations at two of its campuses in Shenzhen. To reduce the impact of the lockdown, the company has relocated production to other sites that are still operating regularly. The lockdown is expected to last until March 20.
Lockdown is short - ending March 20th but still. This is a bit drastic for something that is about as serious as a bad cold...
Leave a comment