Chinese energy restrictions hit iPhone suppliers
Manufacturers have warned that further disruption to China’s energy supply could hamper the production of tech products, including iPhones.
In the final week of September many factories in the key manufacturing hub of Jiangsu were forced to cut or stop output altogether after the province was called out by the government for exceeding its carbon budget.
Companies in the region, including key Apple suppliers, could be forced to curb tech production further amid a worldwide energy shortage and stringent energy targets.
“We are currently reviewing the inventories for all the components and parts we have in stock. The situation is still controllable at the moment, but we fear it will happen again,” an executive of an iPhone supplier said in comments reported by Nikkei Asia. “It will be a huge disruption if we run out of inventory.”
A Dongguan-based electronics supplier told Nikkei Asia that production-line workers would be forced to take night shifts to rush some products out amid restrictions.
The disruption comes at a particularly critical time for the industry as the period between September and November is traditionally the busiest period for tech manufacturers ahead of the Winter holiday season.
Restrictions on energy usage come after the government announced harsher punishments for provinces that fail to stay on track to meet the target of achieving net zero emissions by 2060. A recent statement by the National Development and Reform Commission said that 20 of China’s 30 provinces and regions were not on track.
Far-reaching measures taken by Beijing to realign the country with its climate goals have already hit a wide range of key suppliers to Apple, Tesla, Microsoft, HP and Dell.
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