- Tram Ho
While CEO Tim Cook is confident about China’s ability to control the corona virus, the risk of Apple’s supply chain disruption emerging from elsewhere. Last week, LG Innotek, a supplier of camera modules for iPhones, was forced to temporarily close one of its factories due to a worker exposed to the corona virus source.
The report shows that not only LG Innotek, but also Samsung was forced to temporarily close its factory in South Korea over the weekend. The company announced the plant would be reopened on Tuesday afternoon. Located in Gumi, the factories are all close to Daegu, which has the highest number of corona virus infections in Korea to date.
LG Innotek’s factory, meanwhile, has a more important influence on Apple as it is the main supplier of camera modules for iPhones. Reuters reports that the Korean plant will be closed on Monday for sterilization. However, it is unknown whether the plant will reopen on Tuesday.
Currently, LG Innotek is also the main supplier of camera modules for the upcoming iPhone 12 with 3D ToF (Time of Flight) sensor modules. If LG Innotek’s factory is closed for only a few days, this may not have much impact on iPhone production, but things could get more complicated.
In a recent interview with Fox Business, Mr. Cook showed his optimism about the situation of corona virus in China. He also emphasized that parts and supplies for iPhones come from many parts of the world. He also believes that the Chinese government will control this disease.
However, when the corona virus is spreading beyond the Chinese border to spread to other countries, especially in places that are producing important parts with iPhones like South Korea, Apple’s global supply chain is still at risk of being interrupted.
So Apple is also diversifying its supply to minimize the impact from the corona virus. According to a report from analyst Ming-Chi Kuo, camera lens maker Yujingguang is no longer the exclusive supplier of iPhones, and its rival, Daliguang, will take over part of Apple’s orders. with this component. This will help improve production rates at a time when many factories in China have yet to return to normal operation.
Refer to 9to5Mac
Source : Genk