Many Apple, Tesla suppliers halt production in China amid power pinch


2/2

© Reuters. FILE PHOTO: People wearing face masks are pictured at an Apple Store on the day the new Apple iPhone 13 series goes on sale, in Beijing, China, September 24, 2021. REUTERS/Carlos Garcia Rawlins

2/2

(Reuters) -Several key Apple (NASDAQ:) and Tesla suppliers said they had halted production on Sunday at some of their Chinese facilities to comply with the country’s tighter energy consumption policy.

Apple supplier Unimicron Technology Corp said that three of its subsidiaries in China had to stop production from midday on Sept. 26 until midnight on Sept. 30 to “comply with the local governments’ electricity limiting policy”. It did not expect a major impact, adding that other factories would make up production, the company said in a statement late on Sunday.

The temporary stop to production by the companies puts supply-chain continuity at risk during a peak season for electronics goods including the latest iPhones.

Eson Precision Engineering, an affiliate of Foxconn, said it suspended its production from Sunday until Friday at its facilities in the Chinese city of Kunshan, reported earlier.

IPhone speaker component supplier Concraft Holding, which owns manufacturing facilities in the Chinese city of Suzhou, said it would suspend production for five days until noon Thursday and utilize its inventory to support the demand.

China’s power crunch, caused by tight coal supplies and toughening emissions standards, has triggered a contraction in heavy industry across several regions and is dragging on the country’s economic growth rate, analysts said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

See also  Stocks loiter at record highs, waiting for Congress; oil jumps

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

LEAVE A REPLY

Please enter your comment!
Please enter your name here