Apple iPhone manufacturer Pegatron has shut production at two plants in China owing to Covid-19 restrictions, as the country takes a strong stance on its Zero-Covid policy, implementing lockdowns in major manufacturing hubs across the country.
According to Nikkei Asia, dozens of Apple and other suppliers have said they have suspended operations in and around Shanghai since April 2.
"Three key Apple suppliers have suspended production in and near Shanghai as strict Covid-19 lockdown measures show signs of affecting the US tech giant's supply chain in China," the report said late on Tuesday.
Pegatron is a Taiwanese company that assembles the iPhone, along with Foxconn and Wistron, for Apple.
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The shutdown could have a significant impact on both Pegatron and Apple, according to the report.
Pegatron makes "roughly" 20 to 30 per cent of all iPhones.
Pegatron "hopes to resume production soon," the report said.
Due to China lockdowns and Covid restrictions, Apple suppliers Pegatron, Quanta and Compal have suspended manufacturing.
Elon Musk-run Tesla has also shut its Shanghai factory.
China is facing severe criticism over its zero-Covid policy. The country has defended tough measures that have resulted in hardship in several Chinese cities, including Shanghai.
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The European Union Chamber of Commerce in China said Covid lockdowns have caused "significant disruptions" for many companies.
