Apple, Tesla Suppliers Suspend Production Due to Power Rationing in JIangsu, China

BEIJING, September 26 (TMTPOST) — Power supply curtailment has been in place in many provinces in China due to power supply shortages, affecting the operation of a number of suppliers of Apple and Tesla. A few key suppliers of Apple and Tesla have announced that their supsension of production in China. Apple is now facing risks in the supply chain following its launch of new iPhone models.

Source: Visual China

Eson Precision, the main supplier for Apple and Tesla, announced on Sunday that its plants in Kunshan city, Jiangsu province, will suspend production from Sunday to Friday in response to the city’s policy on electricity use for industrial purposes, Nikkei Asia Review reported. The company said in its announcement that its inventory will help maintain the operation of the factory during the production suspension and that it will make use of holidays to satisfy the demand of its clients.

Apple’s printed circuit board supplier Unimicron said that its plants in Suzhou and Kunshan city in Jiangsu province will also have to suspend production from Sunday noon to the end of September. According to the company, it will allocate other plants’ production capacity to reduce the impact of the suspension.

Apple’s acoustic component supplier Concraft has a plant in Suzhou as well. The plant announced that it will suspend production for five days until Thursday noon. Concraft will also use its inventory to satisfy the clients’ demand.

Pegatron, who assembles iPhones for Apple, also has major manufacturing bases in Kunshan and Suzhou. The company said that its plants in Jiangsu province are currently operating as usual but they have already prepared generators for the situation. Pegatron is now awaiting further notice from the local government. Apple’s supplier Foxconn, which has plants in Shenzhen, Taiyuan and Zhengzhou, is not impacted by the electricity usage restriction.

Assembly and test service providers that serve major chipmakers such as Intel, NVIDIA and Qualcomm, have also received notice that requires their production plants in Jiangsu province to suspend production for a few days, sources said.

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