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• Shenzhen’s growing number of COVID-19 cases are mostly linked to Hong Kong
• Foxconn has suspended operations due to omicron outbreak
China has placed about 17.5 million residents of the southern city of Shenzhen under lockdown for at least a week until March 20, as the number of cases doubled nationwide.
The country has reported nearly 3,400 new COVID-19 infections on Saturday, the worst outbreak since the early days of the pandemic.
Although the government is stepping up efforts to stem the spread, worries are also mounted over the highly infectious omicron variant outbreak in China’s most developed large city and economic powerhouse.
The new growing number of cases have turned into an unprecedented challenge for the country’s ‘zero-COVID’ approach.
The Shenzhen government announced the lockdown as the tech hub is struggling to eradicate new cases linked to the neighbouring virus-ravaged city of Hong Kong.
In February, China’s President Xi Jinping told the government of Hong Kong to take “all necessary measures” to bring the territory’s new omicron outbreak under control.
Global chip supply could take hit
Apple Inc (NASDAQ: AAPL) suppliers Foxconn and Unimicron Technology Corp on Monday said they had suspended operations in Shenzhen due to the outbreak and lockdown.
Foxconn, also known as Hon Hai Precision Industry Co, the largest iPhone assembler, said it is suspending operations at the two campuses and has reallocated production to other sites to reduce the impact of the disruption.
The Taiwanese company didn’t specify the length of the suspension.
Printed circuit board maker Unimicron also supplies components to Intel Corp (NASDAQ: INTC).
The lockdown in China’s tech capital can pose more constraints on chips supplies worldwide.
However, Reuters reported that the government could allow companies to operate if they could form a “closed management” system where employees would be cut off from the broader population while working in the manufacturing plants.
Such a system was in place during the Beijing Winter Olympics.
Picture Credit: NYTimes