Key iPhone maker Pegatron has halted operations at two subsidiaries in the Chinese cities of Shanghai and Kunshan, as global supply chains feel the pinch of Beijing’s strict zero-Covid measures.
The business hub of Shanghai has become the heart of China’s biggest Covid-19 outbreak since the virus surfaced more than two years ago.
The city of 25 million has remained almost entirely locked down since the start of the month.
“We have temporarily suspended work,” said Pegatron in a filing to the Taiwan Stock Exchange on Tuesday.
The Taiwanese firm said it “actively cooperates with local authorities” and would try to resume operations as soon as possible.
The suspensions apply to two of its subsidiaries, in Shanghai and nearby Kunshan city.
Stay-at-home orders and stringent testing rules have strained supply chains in and around Shanghai, home to the world’s busiest container port and a critical gateway for foreign trade.
China reported nearly 28,000 local virus cases on Wednesday, the vast majority in Shanghai.
