iPhone maker Pegatron halts production at its Shanghai and Kunshan factories due to COVID restrictions

Pegatron, a Taiwanese company that is one of the few companies assembling the iPhone, halted production at two factories in Shanghai and one in Kunshan to comply with the Chinese government’s strict COVID-19 regulations, according to Nikkei Asia. China has put strict policies in place in response to a recent resurgence of COVID-19 in the country.

The shutdown could have a significant impact on Pegatron and Apple. Nikkei Asia Pegatron reports that these factories are its only iPhone manufacturing centers, and Pegatron is responsible for manufacturing “approximately” 20-30% of all iPhones. Pegatron “hopes to resume production soon,” the publication says, though it’s unclear exactly when that might happen.

Apple did not immediately respond to a request for comment. Quanta, which helps make MacBooks, has also halted production at a site in Shanghai, according to Nikkei Asia.

Supply chain issues have been a constant problem during the pandemic, affecting businesses across many industries. Tesla also had to close its Shanghai factory in response to Chinese restrictions, for example. And the global chip shortage has made it harder to buy all kinds of consumer electronics.