A key supplier for %Apple ($AAPL) iPhones has suspended production at its two main factories in Shanghai, China as the city of 25 million people remains under a strict COVID-19 lockdown.
%Pegatron announced that it has suspended production at its facility in China’s largest city, as well as the nearby city of Kunshan, until further notice.
Pegatron is a Taiwanese company that is known for making iPhones and other electronics, and it had previously been allowed to continue operating in Shanghai under a closed loop system that would keep essential workers in the factory and other personnel out.
But now, Pegatron has joined a growing list of companies that have been disrupted by China’s latest surge of COVID-19 infections — and the resulting public health restrictions.
Shanghai is China’s financial hub and home to the regional headquarters of hundreds of international companies. It has become the epicenter of China’s latest coronavirus outbreak.
China’s automotive industry has been particularly hard hit. This week, %Volkswagen ($VLKAF) said that its factories in Shanghai and Changchun, a Chinese manufacturing hub, had suspended production for weeks. %Toyota ($TM) reported a similar issue, saying its factory in Changchun had been shut for almost a month.
Even before Pegatron’s announcement, Apple was having to deal with similar snags in its supply chain. Last month, %Foxconn, its other big Taiwanese manufacturer, suspended operations in Shenzhen because of a lockdown in the city just north of Hong Kong.