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China’s Zero Covid Policy Continues to Impact Manufacturing
March 24, 2022 – China’s zero-COVID policy is continuing to have a substantial impact on the production efforts of key manufacturers in the general electronics and automotive part industries.
This policy has forced shutdowns in the critical manufacturing hubs of Shenzhen and Changchun. On top of an already strained global supply chain, massive delays are happening in the manufacturing and development of electronics parts from iPhones to automobiles.
Shenzhen is a major technology hub and home to companies like United Microelectronics Corp (UMC), Samsung, Foxconn (one of Apple’s top iPhone manufacturers), and more. Changchun, on the other hand, is home to some of the world’s largest auto manufacturing facilities, including Volkswagen, Toyota, & China’s own FAW Group. Operations at factories in both cities have been put on hold until local authorities lift the COVID-19 lockdown.
Major Suppliers impacted by the Lockdowns
- Tencent
- Huawei Technologies
- Foxconn
- BYD
- Volkswagen
- Toyota
Image Source: Getty Images
How Can SiliconExpert Help?
SiliconExpert is monitoring the lockdowns and other COVID-19 related supply chain events to help you identify potential risks to your supply chain. We are monitoring manufacturers and businesses that produce the parts within your BOM. By using this tool to assess risk and find alternatives, you could avoid delays in your production line.
Learn more about how SiliconExpert’s Supply Chain Risk Management tool can help keep your business on track!
References
- https://fortune.com/2022/03/14/shenzhen-lockdown-supply-chain-iphone-cars-electronics/
- https://edition.cnn.com/2022/03/14/tech/shenzhen-lockdown-foxconn-operations-intl-hnk/index.html
- https://evertiq.com/news/51544
- https://www.wsj.com/articles/covid-19-outbreak-shuts-down-some-china-factories-including-apple-supplier-11647246503
- https://www.scmp.com/news/china/science/article/3170366/covid-19-china-reports-1337-locally-transmitted-cases-895-new
Photo Caption: Workers at the Suzhou Industrial Park have been required to do Covid tests. Photo Credit: sipac.gov.cn
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