Pegatron, a Taiwanese company that is one of the few companies assembling the iPhone, has halted production at two plants in Shanghai and one in Kunshan to comply with the Chinese government’s strict COVID-19 regulations, according to Nikkei Asia. China has introduced strict policies in response to the recent resurgence of COVID-19 in the country.
The shutdown could have a significant impact on both Pegatron and Apple. Nikkei Asia reports that these Pegatron factories are the only iPhone manufacturing centers, and Pegatron is responsible for manufacturing “about” 20 to 30 percent of all iPhones. Pegatron “hopes to resume production soon,” the release says, though it’s unclear exactly when that will happen.
Apple did not immediately respond to a request for comment. Quanta, which helps manufacture MacBooks, has also halted production at a site in Shanghai, according to Nikkei Asia.
Supply chain issues have been a constant concern throughout the pandemic, affecting businesses across many industries. Tesla, for example, also had to close its factory in Shanghai in response to China’s restrictions. And the global chip shortage has made it difficult to buy all kinds of consumer electronics.