Tesla, Apple suppliers halt production in China amid tightening reforms

Various Apple, as well as Tesla suppliers, have reportedly shut down production at some Chinese factories for a few days to obey the strict energy consumption policies, further resulting in supply chain losses amid peak season for electronics. However, two major Taiwanese chipmakers are continuing to operate normally. 

 

The recent development follows the tight coal supply and stricter emissions requirements in China that has led to a downturn in the heavy industry across several locations as well as lowering the country's economic growth rate.

 

One of Apple’s suppliers Unimicron Technology Corp. announced that three of its Chinese subsidiaries have shut down production from September 26th until midnight of September 30th to comply with the government’s electricity limiting policy.

 

Meanwhile, a Taiwan-based printed circuit board maker claimed that the company is not facing a significant impact since its other plants would be able to make up for the production losses.

 

Eson Precision Ind. Co. Ltd., a subsidiary of Foxconn announced that production at facilities in the Chinese city of Kunshan will be suspended from 26th September to the 1st of next month.

 

On the other hand, a speaker component supplier for iPhones Concraft Holding Co. Ltd., which owns some manufacturing plants in Suzhou city, stated that it would suspend production for five days until noon on Thursday and use inventory to meet market demand.

 

Other chipmakers such as United Microelectronics Corp (UMC) as well as Taiwan Semiconductor Manufacturing Co. Ltd., informed that their China operations were unaffected by the new regulations.

 

These electricity limiting policies have also had a minimum impact on Foxconn’s Kunshan facilities. However, Foxconn was reportedly required to adjust a tiny portion of its capacity, especially involving the production of non-Apple notebook computers.

 

Source credits –

 

https://telecom.economictimes.indiatimes.com/news/apple-supplier-unimicron-says-3-units-in-china-had-to-temporarily-stop-production/86548519