By Dhirendra Tripathi
Investing.com – Apple Inc. (NASDAQ:AAPL) stock traded 1.5% lower Monday after Foxconn (TW:2354), a major manufacturer of iPhones, halted production at its Shenzhen plant.
The company is complying with the Chinese government orders that came in after the worst COVID-19 outbreak in several cities of the country in two years.
Officials in Shenzhen, China's Silicon Valley, have temporarily suspended public transport and urged people to work from home as they carry out city-wide testing this week.
According to Reuters, Foxconn, formally known as Hon Hai Precision Industry, has suspended operations until further notice. The company will deploy backup plants to reduce the disruption of production.
Printed circuit board maker Unimicron Technology (TW:3037), also an Apple supplier, too, has suspended operations, Reuters said.
Several cities in China including the economically important regions of Guangdong, Shanghai, Shandong, and Jilin are under lockdown.
Mainland China reported 1,337 new domestically transmitted COVID infections with confirmed symptoms on March 13, the National Health Commission said Monday. That brought the registered total this year to more than 9,000 compared with 8,378 in 2021, according to Reuters calculations.