TAIPEI (Reuters) – At least 11 Taiwanese companies, mostly making parts for electronics, said on Wednesday that government COVID-19 control measures in eastern China had led them to suspend production, as disruption from the measures spreads.
China has put Shanghai under a tight lockdown since late March and neighbouring Kunshan has also tightened curbs to control the country’s biggest COVID-19 outbreak since the coronavirus was discovered in late 2019 in the city of Wuhan.
Global companies, from mobile phone to chip makers, are highly dependent on China and Southeast Asia for production and have been diversifying their supply chains after the pandemic caused havoc.
The Taiwanese companies making announcements to the stock exchange included Asia Electronic Material Co Ltd, which makes parts for laptops, mobile phones and digital cameras.
It said its plant in Kunshan would be closed until next Tuesday, adding it was “hard to estimate” the financial impact.
EFUN Technology Co Ltd, which makes parts for liquid crystal displays, said its plant in nearby Suzhou would also be closed until Tuesday, and would resume operations when the government gave the go-ahead, though added it did not foresee a financial impact for the time being.
Taiwan’s Pegatron Corp, which assembles iPhones for Apple Inc, said on Tuesday it had suspended operations at its Shanghai and Kunshan plants due to the government’s strict COVID-19 protocols.
(Reporting by Ben Blanchard; Editing by Christopher Cushing)
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