%Foxconn, one of %Apple Inc’s ($AAPL) biggest suppliers, has suspended operations in Shenzhen as China locks down the technology hub to contain the country’s worst COVID-19 outbreak in two years.
The lockdown in Chins will impact not just the country’s post-pandemic recovery, but could deliver another blow to global supply chains, say analysts.
The City of Shenzhen, which borders Hong Kong, is home to Chinese technology giants such as Tencent and Huawei, among others.
Foxconn is the largest contract electronics manufacturer in the world and supplies many of the components used in Apple iPhones and other devices.
Foxconn has two major campuses in Shenzhen. The Taiwanese company said it has adjusted its production line to other sites to minimize the potential impact from the disruption.
China is grappling with its worst COVID-19 outbreak since the original outbreak in Wuhan in early 2020 as cases surge across the country. On Sunday, the country reported 2,125 local Covid-19 cases across 58 cities, according to the National Health Commission (NHC).
Shenzhen is also home to one of the world’s largest container ports, and any disruption there could hit already stressed global supply chains.
The latest lockdowns come just months after China shut the northwestern city of Xi’an, which hit major business operations, including those of Samsung and %Micron ($MU), two of the world’s biggest chipmakers.