Apple’s suppliers have stopped production because China is restricting energy use

Suppression of energy consumption in China has led to the interruption of several key Apple suppliers, according to a new report today.

One supplier for Apple and Tesla said that he was forced to suspend production from Sunday to Friday, while another said that he would have to suspend production in two cities by the end of the month …

Nikkei Asia reports.

Eson Precision Engineering, a subsidiary of Foxconn – the world’s largest iPhone assembler – and a key supplier of mechanical parts for Apple and Tesla, said on Sunday it had suspended production Sunday to Friday at its plants in the Chinese city of Kunshan in direct response to the city’s suspension policy. supply of electricity for industrial use.

“The company will use its inventory to maintain work while production is stopped,” Esson said in a submission to the Taiwan Stock Exchange. “We expect to organize production on weekends or upcoming holidays [next month] to meet customer needs ” […]

Unimicron Technology, a major printing board manufacturer and a key supplier to Apple, said its subsidiaries in the Chinese cities of Suzhou and Kunshan in Jiangsu Province must also suspend production from Sunday at noon to the end of the month. The Taiwanese company said it would mobilize production capacity at its other manufacturing sites to mitigate the impact, according to stock market submissions on Sunday.

A speaker component supplier for iPhone Concraft Holding, which owns manufacturing facilities in the Chinese city of Suzhou, said on the stock exchange that it would suspend production for five days until noon on Thursday and use its inventory to support demand.

The Chinese government is responding to the dramatic increase in the cost of coal and natural gas, which are used extensively in the country to produce electricity. Beijing is also reportedly dissatisfied with the failure of regional governments to achieve emission reduction targets. In addition, it is not uncommon for China to order local shutdowns when air pollution levels increase, especially during events that attract foreign visitors.

City and regional governments have said that household energy consumption is given priority over industrial use.

The move comes at a bad time for Apple, which is already struggling to sustain demand for the iPhone 13, and where a lack of components is also causing production delays. The Kuo report says some components used in Macs are ordered back up to a year.

Photo: Matthew Henry / Unsplash

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