Pegatron announced Tuesday that it has suspended production at its plant in China’s largest city, as well as the nearby city of Kunshan, until further notice.
“The date of factory resumption is to be communicated by the local government,” the company said in a statement, adding that it will work with officials to resume operations “as soon as possible.”
It was not immediately clear which types of production would be affected. Pegatron, a Taiwanese company known for making iPhones and other electronics, was previously allowed to continue operating in Shanghai under a closed-loop system that would keep key workers at the factory and other personnel away, according to reports from multiple outlets including Bloomberg.
The company declined to comment further.
![Traders sleep beside their desks as China's financial center locks down]()
It has joined a growing list of companies disrupted by China’s latest spate of Covid-19 infections – and the resulting restrictions. Shanghai, China’s financial center and home to the regional headquarters of hundreds international companies, has become the epicenter of the recent coronavirus outbreak in China and the latest test of its “zero Covid” strategy, with lockdowns and major headaches for businesses. The country’s auto industry was hit particularly hard. This week, Volkswagen (VLKAF) announced that its factories in Shanghai and Changchun, a Chinese manufacturing hub, had halted production for weeks. Toyota(TM) reported a similar problem and said its Changchun factory had been closed for almost a month.![Covid lockdowns wreak havoc in world's largest car market]()
Tesla (TSLA), which has a gigafactory in Shanghai, has also been forced to halt production since the end of March, according to Reuters. The company did not respond to a request for comment from CNN Business. On Saturday, electric vehicle maker Nio (NIO) said it had also temporarily halted production, describing how its suppliers across China had “suspended production one at a time” amid pandemic-related disruptions in recent weeks. Even before the Pegatron announcement, Apple (AAPL) had to deal with similar problems in its supply chain. Last month, Foxconn, its other major Taiwanese manufacturer, suspended operations in Shenzhen due to a lockdown in the city north of Hong Kong.
– CNN’s Beijing office and Yong Xiong in Seoul contributed to this report.
