Business, Freight News, Logistics

Coronavirus causing High Tech Firms to Rethink Supply Chain

[ March 6, 2020   //   ]

Benzinga, an investor newsletter, is reports that Foxconn, best known for making Apple Inc. devices including iPhones, restarted production earlier last month as the spread of the COVID-19 virus seemingly slowed in China. It added, however, that China continued to suffer a labor shortage as people took precautions against the deadly virus.

The company’s production has already returned to 50% of its normal low-season level, according to tBenzinga, which expects it to come back to full capacity by the end of March.

The coronavirus outbreak could reduce Foxconn’s first-quarter revenue by as much as 15%, the company’s chairman said.

Foxconn, which also makes products for a host of other companies including Inc. and Nintendo Co. Ltd., will also continue to diversify its business outside of China, a strategy accelerated by the recent trade war between the United States and China and the pandemic.