Elaine Jean Tech 03.14.2022 05:Mar AM EDT

Silicon Valley Tech Hub of China Halts Production; Will This Mean Delay for the iPhone 14?

Apple's production of its devices might be affected if COVID continues its outbreak in Mainland China.

Apple is rumored to be releasing its iPhone 14 this fall, however, on top of the global chipset shortage, Omicron remains a global threat.

China's Silicon Valley, the largest manufacturing tech hub in the country, has closed its doors due to the widespread COVID virus.

China's Silicon Valley Tech Hub

China's Silicon Valley halts production of tech devices due to another COVID outbreak.

The country's mainland is now experiencing a widespread outbreak since the country declared a state of emergency in 2020 to combat the pandemic.

China's tech hub lockdown further threatens to cause global supply-chain disruptions.

Disruptions due to the pandemic have already been occurring as a result of the lockdowns. On top of that is the semiconductor shortages and Russia's conflict with Ukraine.

In November, Foxconn predicted that electronic shipments would be slowed until the second half of 2022 due to production traffic.

Businesses in Shenzhen, the most populous city in the manufacturing hub of Guangdong province, have been told to suspend production or have employees work from home for a week,

Since the end of February, more than 400 confirmed cases have been reported in Shenzhen, China's Silicon Valley Hub. Not only are businesses closing but also public transportation and the third round of city-wide testing has also begun.

Among the companies affected by the production halts were Foxconn, a supplier to Apple.

CNBC reports that as of Sunday, mainland China has 1,437 new confirmed cases, with just 100 of them linked to overseas visitors, for a total of 8,531 active cases that were transmitted within the country's borders, bringing the overall number of verified cases to 1,437.

This is the biggest total since March 2020, when the previous record was set.

Apple iPhone Assembly

Apple's supplier, Foxconn, has also halted operations at its Shenzhen facilities, one of which manufactures iPhones, in response to a government-imposed lockdown on the tech hub city.

Hon Hai Precision Industry, more prominently known as Foxconn, planned to suspend operations in Shenzhen for a period of time until the number of cases starts decreasing.

A company spokesperson of Sina Finance stated that the company required government approval before it could resume operations in the city.

In a recent announcement, Foxconn said it would offer significant sign-on bonuses to employees in Zhengzhou, a central Chinese city that is home to the company's largest iPhone assembly line, according to Business Insider.

The company said in a statement that it is suspending operations at the two sites and that it has reallocated production to other locations in order to minimize the impact of the disruption.

Non-essential businesses in Shenzhen are required to close their doors until March 20, according to the Chinese government's regulations.

For residents and businesses in mainland China, lockdowns, closures, and repeated testing have become part of the "new normal" as a result of Beijing's "zero-tolerance" policy toward the coronavirus.

This approach is somewhat contrary to Singapore's "living with Covid-19" approach to combat the pandemic. However, initial indications of success in combating the spread of Omicron on the mainland have come as a result of such tight controls.