As the COVID-19 lockdown continues in China's financial center Shanghai, more and more companies have been forced to halt production.
What Happened: At least 11 Taiwanese companies, mostly making parts for electronics firms, said the lockdown in China had led them to suspend production, according to a Reuters report.
In the list of the companies halting the production due to supply chain disruptions was Taiwan's Pegatron Corp, which assembles iPhones for Apple Inc (NASDAQ: AAPL). The company said it had suspended operations at its Shanghai and Kunshan plants.
Analyst's Take: Piper Sandler analyst Harsh Kumar sees a minimal impact on Apple from supply issues caused by China's strict curbs.
Global companies, from phones to chip makers, remain highly dependent on China for production. The COVID-19 pandemic has prompted them to diversify their supply chains.
Buzzkill Data: Meanwhile, a Reuters report highlighted that the data from Taiwan's Financial Supervisory Commission on April 7 showed that 161 listed Taiwanese companies reported that their operations in Shanghai and Kunshan have stopped — 41 of them make electronics.
Recently, automakers Tesla Inc. (NASDAQ: TSLA) and Nio Inc. (NYSE:NIO) also had to halt production as many suppliers suspended operations amid supply chain issues.
Photo courtesy: Apple
