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Article

8 May 2022

Author:
Brenda Goh, Zhang Yan, Sarah Wu, Christian Schmollinger - Reuters (UK)

China: Turmoil at Apple supplier Quanta shows strains of Shanghai Covid lockdown

"Chaos at Apple supplier shows strains of Shanghai COVID lockdown" 8 May 2022

Quanta Shanghai Manufacturing City would seem like an ideal site to implement China's "closed-loop" management system to prevent the spread of COVID that requires staff to live and work on-site in a secure bubble.

Sprawled over land the size of 20 football fields, the campus houses factories, living quarters for 40,000 workers, some living 12 per room, and even a supermarket.

But as COVID-19 breeched Quanta's defences, the system broke down into chaos on Thursday.

Videos posted online showed more than a hundred Quanta workers physically overwhelming security guards in hazmat suits and vaulting over factory gates to escape being trapped inside the factory amid rumours that workers on the floor that day tested positive for COVID.

The turmoil at Quanta underscores the struggles Shanghai faces to get its factories, many of them key links in global supply chains, back up to speed even as much of the city of 25 million remains locked down under China's "dynamic-zero" COVID policy.

Taiwan-based Quanta (2382.TW) puts together about three-quarters of Apple's (AAPL.O) global MacBook production and also manufactures computer circuit boards for Tesla. (TSLA.O). [...]

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