Taiwan Suffers Fallout From China COVID-19 Lockdowns As 11 Firms Said To Suspend Production

As the COVID-19 lockdown continues in China's financial center Shanghai, more and more companies have been forced to halt production. 

What Happened: At least 11 Taiwanese companies, mostly making parts for electronics firms, said the lockdown in China had led them to suspend production, according to a Reuters report.

In the list of the companies halting the production due to supply chain disruptions was Taiwan's Pegatron Corp, which assembles iPhones for Apple Inc AAPL. The company said it had suspended operations at its Shanghai and Kunshan plants.

Analyst's Take: Piper Sandler analyst Harsh Kumar sees a minimal impact on Apple from supply issues caused by China's strict curbs.

Global companies, from phones to chip makers, remain highly dependent on China for production. The COVID-19 pandemic has prompted them to diversify their supply chains.

Buzzkill Data: Meanwhile, a Reuters report highlighted that the data from Taiwan's Financial Supervisory Commission on April 7 showed that 161 listed Taiwanese companies reported that their operations in Shanghai and Kunshan have stopped — 41 of them make electronics.

Recently, automakers Tesla Inc. TSLA and Nio Inc. NIO also had to halt production as many suppliers suspended operations amid supply chain issues.

Photo courtesy: Apple