China’s government issues a notice on August 14 ordering factories to suspend operations until August 20 in an effort to conserve energy while battling its worst heatwave in 60 years. Apple’s iPad supplier Foxconn was one of the companies affected in China’s Sichuan region. However, Foxconn has now resumed operations.
Foxconn’s plant in China’s Sichuan province was allowed to resume operations on August 25 on a priority-basis
In mid-August, it was reported that industrial users across 19 out of 21 cities in the province were ordered to suspend production by the Department of Economy and Information Technology of Sichuan from August 15 until August 20 to prioritize residential power supply.
At the time, TF Securities analyst Ming-Chi Kuo said that the power outages in the region could impact iPad production. However, the impact of the power outages would be limited if they end as scheduled on August 20.
Now, according to a new report from Nikkei Asia, Apple supplier Foxconn was able to resume production on August 25 as authorities provided the company with power on a priority basis due to the economic impact it has on the region.
Sichuan’s record-breaking heat wave has eased, with rain in the province since Wednesday helping to bring temperatures down to the lower 30 C range from over 40 C.
Power demand from air conditioners appears to have passed its peak. However, operating rates at Sichuan’s hydropower stations — a key source of electricity in the province — are not expected to rise for some time.
The Cupertino tech giant is expected to release two new iPad models at an event in October, an iPad Pro refresh with the M2 chip as well as the 10th-generation entry-level iPad with a larger display.
In related news, it was recently reported that Foxconn is going to spend $300 million to expand its production facilities in Vietnam. The move is meant to boost and diversify its production in the region. In addition, the company started ramping up recruitment of workers for the iPhone 14 lineup by offering a higher bonus, at the start of this month. The bonus Foxconn is offering is a 50% increase from the standard number.
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