Apple supplier BOE, others say production hit by Sichuan power rationing

Apple iPhone 13 are pictured at an Apple Retailer on the day the brand new Apple iPhone 13 sequence goes on sale, in Beijing, China, September 24, 2021. REUTERS/Carlos Garcia Rawlins/File Picture

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SHANGHAI, Aug 16 (Reuters) – Apple supplier BOE Know-how Group Co Ltd (000725.SZ) will “make changes” at its operations in Sichuan attributable to power rationing within the area, it mentioned in a inventory market submitting on Tuesday.

The corporate mentioned that it was speaking with authorities and anticipated “no main impression on its general working efficiency”.

It added that it has 4 production traces making shows for {hardware} units within the area – two traces producing LCD screens, and two producing AMOLED screens.

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The corporate provides small volumes of shows to Apple for its iPhone 13 units and older fashions, and will probably provide shows for the upcoming iPhone 14, based on studies from Ming-Chi Kuo, an Apple analyst at analysis agency TF Securities.

Apple didn’t reply to a request for remark.

A record-setting heatwave in Sichuan province has led authorities to implement power rationing in a number of cities, which has subsequently triggered a variety of corporations to chop production.

CATL, the world’s largest battery maker, will cease production at its crops within the metropolis of Yibin from Aug. 15-20 as a result of power cuts, native information outlet Jiemian reported on Tuesday. CATL didn’t reply to a request for remark.

Additionally on Tuesday, Japanese media outlet Kyodo reported that Toyota (7203.T) had suspended production at its plant in Sichuan.

Chemical producer Sichuan Xinjinlu and mining firm Sichuan Hongda Co Ltd (600331.SS) additionally introduced sure items within the area would droop production.

On Monday, Apple supplier Hon Hai Precision Business Co Ltd (2317.TW) declined to verify the standing of its operations in Sichuan however a spokesperson mentioned the impression of the power crunch was “not massive”.

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Reporting by Josh Horwitz; Further reporting by Zhang Yan; Modifying by Jason Neely and Jacqueline Wong

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