Pegatron, a Taiwanese company that is one of the few companies that assembles the iPhone, has halted production at two plants in Shanghai and one in Kunshan to comply with strict Chinese government regulations related to COVID-19, according to the Nikki Asia. China has instituted strict policies in response to the recent resurgence of COVID-19 in the country.
The shutdown could have a huge impact on both Pegatron and Apple. Nikki Asia It is reported that these Pegatron factories are the only iPhone manufacturing centers, and that Pegatron is responsible for manufacturing roughly 20 to 30 percent of all iPhones. The publication said Pegatron “hopes to resume production soon,” although it was unclear exactly when that might happen.
Apple did not immediately respond to a request for comment. According to Quanta, which helps manufacture MacBooks, production has also been halted at a location in Shanghai Nikki Asia.
Supply chain issues have been an ongoing problem during the pandemic, affecting businesses in many industries. Tesla also had to shut down its Shanghai factory in response to China’s restrictions, for example. The global shortage of chips has also made it more difficult to purchase all types of consumer electronics.