A Covid outbreak hit a Foxconn factory in Zhengzhou, China, the location of the world's largest plant for Apple's iPhone, raising speculations the outbreak might stall production.
A company spokesperson, however, said on Tuesday, Oct. 25, the impact of the outbreak is "controllable."
The official of Hon Hai Technology Group, a Taiwanese multinational electronics company known internationally as Foxconn, said the production at Zhengzhou is stable.
'Small Number'
The spokesperson said only a "small number of employees" were affected, and the company is providing the necessary support in compliance with the local pandemic policies.
Foxconn, he said, assured its employees of livelihood as well as material and psychological support.
Despite the outbreak, Foxconn is confident that the production target for the quarter has not changed, CNBC reports.
Foxconn Denies Reports
Foxconn denied reports that some 20,000 people have contracted Covid at Zhengzhou Industrial Park.
The company released a statement at noon on Oct. 26 saying the information circulating online was false.
The company said only a small number of Foxconn employees were diagnosed with Covid.
The company has 300,000 employees across 90 production lines in its three factories in Zhengzhou. These three sites are the main manufacturing base for Foxconn.
While the production target has not changed, the outbreak is expected to hamper shipments of iPhone 14.
Covid Restrictions
The iPhone maker has imposed restrictions on the assembly plant amid the Covid outbreak, South China Morning Post reports.
The city has sealed off the Zhengzhou industrial site to keep the operations going.
This month, a new wave of Covid hit the regional capital of central China's Henan province. Some districts were placed on lockdowns in compliance with China's zero-Covid policy.
The outbreak at Foxconn's industrial site came in the middle of Zhengzhou's campaign to contain the larger outbreak.
Foxconn implemented measures early this month to prevent the spread of the virus. It subjected all its employees to Covid tests upon entering the company premises.
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Foxconn Not Doing Enough
The company has a tough balancing act in maintaining the level of production while it implements heightened Covid measures.
According to the South China Morning Post, many people inside the company are complaining that Foxconn is not doing enough for its employees.
Some social media users said many Covid cases were diagnosed in the company every day. But these people were receiving enough support, such as food and medication, they said.
An employee told the South China Morning Post, it has not done enough to separate the people infected with Covid on time
Shift From China
Apple depends largely on China for the supply of the iPhone. The Covid outbreak at the Zhengzhou plants might change the company's portfolio of its supply chain.
On Monday, Oct. 24, the Cupertino tech company announced it would start producing iPhone 14 in India.
Apple said it is enthusiastic about opening a manufacturing base for iPhone 14 in India. The company has been producing older lines of iPhones in India since 2017.
It will be the first time the Cupertino tech company will produce new iPhone lines in India.
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