Electronics Shortages Could Return After Lockdown in Shenzhen
Foxconn's Shenzhen factories have stopped working due to a lockdown. This does not bode well for the availability of electronics and their prices.
- Foxconn halts work at two of its factories due to lockdown in Shenzhen;
- China imposes covid restriction due to 60 new infections in the area.
The lockdown in China's Shenzhen doesn't mean anything good for us. Many electronics companies, such as Foxconn, have factories located in this city. This electronics manufacturer, known for its motherboards, among other things, has halted production at its factories in Longhua and Guanlan.
As reported by Nikkei Asia, the Chinese authorities - due to the identification of 60 new cases of Covid-19 in Shenzhen - have imposed a lockdown in this area, as well as in Shanghai. This may also have to do with the rapid increase in the rate of infection throughout the country.
China continues a very restrictive policy against SARS-Cov2 virus infections. It is unclear how long the lockdown will last. If authorities fail to stem the new wave of Covid-19 cases, more factories could halt operations.
Foxconn supplies components to major electronics manufacturers like Xiaomi, Samsung and Apple. The downtime could affect the availability of devices and, of course, their prices. Many technology giants such as Tencent, Oppo and Huawei have their headquarters in Shenzhen.
