Pegatron announced Tuesday that it has suspended production at its facility in China’s largest city, as well as the nearby city of Kunshan, until further notice.
“The date of restart of the factory is to be advised to the local government,” the company said in a statement.
It was not immediately clear what type of manufacturing would be affected. Pegatron, a Taiwanese company known for making iPhones and other electronics, was previously allowed to continue operating in Shanghai under a closed-loop system that would keep out essential workers and other personnel at the factory – many As reported by outlets, which include Bloomberg.
The company declined to comment further.
it is included A growing list of companies that have been disrupted by China’s latest surge of Covid-19 infections – and the resulting restrictions.
Shanghai, the financial center of China and home to the regional headquarters of the Hundred Of international companies, China has become the epicenter of the latest coronavirus outbreak, as well as the latest test of its “zero-Covid” strategy.
Since the latest wave began in March, the city has recorded more than 220,000 Covid cases, leading to stricter stay-at-home orders and more headaches for businesses.
The country’s auto industry has been particularly hard hit. This week, Volkswagen ,VLKAF, said its factories in Shanghai and the Chinese manufacturing hub of Changchun had suspended production for weeks. Toyota ,tm, reported a similar issue, saying that its factory in Changchun was closed for almost a month.
Tesla ,TSLA,, which has a Gigafactory in Shanghai, has also been forced to halt production since late March, according to Reuters. The company did not respond to a request for comment from CNN Business.
Electric Vehicle Manufacturers on Saturday NIO ,NIO, said it had also temporarily halted manufacturing, explaining how its suppliers across China “suspended production one after another” due to pandemic-related disruptions in recent weeks.
Even before Pegatron was announced, Apple ,AAPL, Had to deal with similar hassles in our supply chain. Last month, its other big Taiwanese maker Foxconn suspended operations in Shenzhen due to a lockdown in the city north of Hong Kong.
– CNN’s Beijing bureau and Yong Xiong in Seoul contributed to this report.
