Signs of disruption in Apple’s manufacturing are being seen in China’s Apple supplier BOE technology group. BOE group announced it will make adjustments to its operations in Sichuan province in China due to power rationing there in the region. The company said it is in communication with executives and expects there will be no major impact on its overall operating performance. It said there are four production lines in the region including production of displays for hardware devices. Two lines are producing LCD screens and two are manufacturing AMOLED screens. The company supplies small quantities of displays to Apple for its iPhone 13 devices and older models. The company also supplies for upcoming iPhone 14 device.
A record setting heat wave in Sichuan province in China has prompted authorities there to implement power rationing in several cities forcing many companies to cut manufacturing output including many chemical and mining companies. Chemical producer Sichuan Xinjinlu and mining company Sichuan Hongda Co Ltd also announced certain units in the region would suspend production.
However, Apple’s another supplier Hon Hai Precision Industry Co Ltd declined to confirm status of its operations in Sichuan but it said impact of power shortage was not huge. Furthermore, it was reported that CATL the world’s largest battery maker will stop production at its plants in the city of Yibin and Automobile manufacturer Toyota had also suspended production at its plan in Sichuan.