iPhone assembly plant in China lacks electricity

The shortage of electricity produced in China has forced some Apple product assembly plants to reduce capacity, affecting iPhone supply more or less.

Follow Bloomberg, iPhone assembly plants in China are starting to reduce energy consumption due to sudden power shortages in the country. The Chinese government also imposed measures to limit excessive energy consumption on a range of businesses.

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Foxconn and many iPhone assemblers in China had to reduce capacity because of power shortages. Photo: SCMP.

On September 27, Pegatron, Apple’s main partner in iPhone assembly, said it is taking energy-saving measures to comply with local policies. In addition, according to insiders, companies responsible for manufacturing mobile devices for Apple in China seem to be having to access priority power to maintain operations.

“Pegatron has taken steps to save water and energy over the past few years. We have a comprehensive response program in place for the current situation to minimize the impact on operations and production capacity,” Pegatron said in a statement.

For now, Pegatron’s iPhone production facility in the east of Kunshan city will only be slightly affected. At the same time, the reduction in power consumption will not have a major impact on Luxshare Precision Industry’s iPhone assembly unit. In addition, people close to Luxshare said that the factory is still ready to assemble key products to ship according to the original schedule.

Restrictions on industrial energy use have been imposed in several Chinese provinces, including major economic hubs such as Jiangsu and Guangdong. Currently, the country’s authorities are taking many measures to try to reduce greenhouse gas emissions. In addition, the escalation of coal and gas prices also affects energy production and consumption in the “factory of the world”.

Despite some difficulties, the global iPhone supply chain is currently quite stable. In addition, senior managers at major suppliers for Apple are still closely monitoring developments in the production situation.

Follow Zing/Bloomberg

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