Foxconn’s COVID-Impacted China Plant Nearing Full Production Resumption – Sources, Reuters

By Yimou Lee

TAIPEI – Foxconn’s iPhone manufacturing facility in Zhengzhou, China, which faced disruptions due to COVID-19, is nearing a return to full production capacity. According to two sources familiar with the situation, the plant’s shipments in December are projected to hit about 90% of the original targets.

Foxconn, officially known as Hon Hai Precision Industry Co Ltd, chose not to provide any comments on the matter.

The largest iPhone production facility for Apple Inc experienced significant operational challenges at the end of the previous year. A surge in COVID-19 cases, combined with containment measures, led to a mass exodus of workers. The plant also experienced unrest among employees related to payment concerns.

To mitigate these challenges, Foxconn has been offering bonuses aimed at recruiting new staff and retaining current employees. A company insider indicated last month that the goal is to achieve full production recovery by late December to early January.

“Production has almost fully resumed,” one source stated, requesting anonymity due to the confidential nature of the information.

The second source indicated that while production is close to normal levels, company officials are approaching the situation with caution in light of rising COVID-19 cases across China. “We anticipate a peak in cases around the Lunar New Year holiday,” this individual noted, referring to the upcoming week-long celebration beginning January 21. “It remains uncertain whether this will lead to additional challenges.”

On Saturday, local state media from Henan province, where the facility is located, reported that the workforce at the plant is currently stable at approximately 200,000 employees. The supply chain has also stabilized, which has facilitated a recovery in production capacity.

The Zhengzhou plant has the capacity to house as many as 300,000 workers.

The difficulties faced by the Zhengzhou facility underscored the challenges companies and workers encountered while adhering to China’s strict zero-COVID policy. Following Foxconn’s struggles and widespread protests against the policy, the central government made a sudden shift in early December, moving toward a strategy of coexisting with the virus. This decision was met with relief but has also led to a significant increase in infections nationwide.