Chinese power cuts to have ‘little impact’ on production: Hon Hai

/in /by

08/16/2022

Taipei, Aug. 16 (CNA) Cuts in power to industrial customers in China’s Sichuan province, including to the facilities of Hon Hai Precision Industry Co., will only have a limited impact on Hon Hai’s production there, the Taiwanese manufacturing giant said Tuesday.

The Sichuan provincial government suspended the supply of power to industrial customers from Aug. 15 to Aug. 20 to ensure grid stability amid scorching heat that has engulfed southern China and stretched power grids to the limit, according to Chinese media reports late Monday.

Sichuan’s announcement said it has given priority to supplying power for residential use, according to the reports.

Hon Hai, known as Foxconn internationally, said Tuesday that power restrictions at its Chengdu facility should have only a limited impact on production.

According to its official WeChat account, Foxconn’s Chengdu plant belongs to Hon Hai’s B business group, which was established in 2010 and manufactures products such as wearable devices, mobile devices, Internet of Things and other products, including for Apple.

Analyst Kuo Ming-chi (郭明錤), who is known for his insight into Apple, said Sichuan’s power rationing of industrial electricity could affect iPad assembly plants, including Foxconn’s Chengdu facility and Compal Electronics’ factory in Chongqing.

Kuo said, however, that the power cuts should only have a limited impact on production if the restrictions are lifted on Aug. 20 as scheduled.

The flexible production scheduling of iPad plants should also help reduce the impact of power outages on production, he said.

Kuo said it was worth observing whether similar incidents could occur in the next few months and whether they will affect Apple’s new product shipments during the peak season.

Asked to comment on the issue, Compal said Tuesday that it has yet to obtain the necessary information to be able to give a clear response.

Source:Chinese power cuts to have ‘little impact’ on production: Hon Hai – Focus Taiwan