The outbreak of the omicron variant of the coronavirus in Shenzhen in southern China could further complicate the supply of chips and other electronic components. The city is considered China’s Silicon Valley, with numerous contract manufacturers such as Apple supplier Foxconn operating factories in the special economic zone. Strict lockdown policies to contain the virus are forcing Foxconn and other companies to halt production.
Some of the shortfalls could be compensated for once manufacturing restarts, he said. However, price fluctuations and supply shortages of certain components must be expected, a semiconductor expert told the Chinese Global Times. So far, it is unclear when the measures will be lifted, the newspaper adds.