Apple, Tesla Suppliers Halt Production Under Chinese Energy Policy
A crippled sector is facing even more upheaval as Beijing’s strict energy consumption policy halts production at factories that act as major suppliers of Apple and Tesla parts.
This comes as the electronics industry hits peak season, and may jeopardise the roll out of Apple’s new line of products.
Esson Precision Engineering, an affiliate of he world’s largest iPhone assembler Foxconn, and supplier of key Tesla parts, has suspended production at its Kanshan factory for at least a week.
“The company will take advantage of its inventory to sustain operations,” Esson said in filing with the Taiwan Stock Exchange. “We expect to arrange production over the weekend or in the coming holidays [October] to meet the needs of customers.”
The crackdown comes as gas and coal prices rise, and the country aims to reduce its emissions.
Chinese President Xi Jinping told the UN General Assembly that China would stop building coal-fired power plants in a bid to move towards green energy.
Among the companies forced to shut down temporarily, are two Unimecron Technology factories, who are Apple’s main print circuit board makers, iPhone speaker component supplier Concraft Holding, with leading iPhone assembler Pegatron on alert, and installing power generators to handle the energy limits.