Foxconn, a major Apple Inc. supplier, announced on late Wednesday that it would partially resume production in Shenzhen, China.
Accordingly, the Taiwanese company would use a bubble arrangement to resume production until Sunday.
The campuses will operate through a closed-loop management system, a setting requested by the local government.
Accordingly, this protocol, used during the recent Winter Olympics in Beijing, has kept event workers sealed off from the public.
Moreover, the company added that it would continue to work closely with the relevant authorities in monitoring operations.
The firm’s main facilities in the Chinese manufacturing hub are in Longhua Town and Guanlan.
However, the company did not specify where production would resume or what type of products.
Foxconn, formally called Hon Hai Precision Industry Co Ltd, has seen a minor impact in the latest work arrangement.
Regardless, several managers raised concerns about the bubble directives extending beyond Sunday.
The world’s largest contract electronics maker had paused its operations in the city earlier this week after an uptick in COVID-19 cases.
The previous shutdown came days after Apple unveiled its latest slate of new products. The first event of the tech giant this year included an upgraded iPhone SE.
Analysts anticipate the budget handset to outperform in Asia. It ignited the competition with Android phones under the same price range.
Foxconn manufactures parts of iPhones, iPads, and Macs in Shenzhen. Nevertheless, 50.00% of iPhone production is at a factory in Henan province.
In line with this, the heavyweight technology firm can start to ramp up production in provinces with fewer restrictions.
The company’s latest announcement sent its stock price to an upward movement. Foxconn edged up 2.12% or 0.05 points to $2.20 per share on Thursday’s trading.
China allows Foxconn, other firms to resume work
Aside from Foxconn, the Chinese government also allowed other firms to resume work under a bubble arrangement against coronavirus.
For instance, leading electric car maker Tesla mentioned that it would keep production going at its Shanghai factory.
Then, Volkswagen announced to resume production in Shanghai after a 48-hour suspension.
However, auto manufacturer BYD and KFC operator Yum China indicated a hit to their operations.
Furthermore, manufacturers in Guangdong province, one of the country’s critical export hubs, cited that factory shutdowns caused lags in deliveries.
Correspondingly, logistics difficulties made it complicated to ship goods to overseas customers.
