13 May 2022
COVID-19 Lockdowns Devastate Apple Vendors, Biggest Chip Producer in China
The Index Today
The ongoing COVID-19 lockdowns and restrictions have wrecked China’s largest chip producer and a prominent Apple supplier as the country battles its biggest outbreak of coronavirus infections since March, 2020.
According to Bloomberg News, Semiconductor Manufacturing International Co. (SMIC) slashed its fiscal outlook for the second quarter by 5%, while Pegatron Corp. trimmed its forecast for notebook deliveries to somewhere between 5% and 10% from a previous surge of 25% to 30%.
China’s stringent COVID-Zero mandate has had a sizeable impact on the normal way of life as evidenced by lockdowns, quarantines, border closures and mass-testings especially in Shanghai, a major global financial hub and home to 26 million residents, reported Bloomberg News.
Gao Yonggang, the Chairman of SMIC, revealed, “We are trying our best to mitigate the impact on product delivery.” He added, “We are still assessing the actual impact as many suppliers restart their operation.”