Foxconn’s China factories will resume full production in late February

According to a source with direct knowledge of the matter at hand, Taiwan’s Foxconn aims to gradually restart operations at its factories in China and could resume full production within 3 weeks.

Foxconn has filed requests to reopen factories with Chinese authorities, said the source while adding that a full resumption is likely towards the fag end of February.

Delays in resuming its operations is likely to impact supply chains of global tech companies, including Apple Inc.

“Roads are closed in some parts of the country. Nobody knows for sure if some workers could get back in time,” said the source, who described a “chaotic” situation in the company’s top management as it scrambles to meet different requirements for the resumption of operations set by various local governments across China. “A full resumption will take at least one to two weeks from Feb. 10.”

In some cities, authorities are asking companies to place workers who are returning from other provinces under a three-day quarantine; this is a challenge for big companies such as Foxconn, said the source.

“How is it possible to quarantine tens of thousands of people in one neighborhood for three days?” said the source.

Foxconn is evaluating the potential impact the coronavirus is likely to have on its 2020 profits.

“Profit is definitely going to be hit, but as to how big the impact will be, we’re still calculating,” said the source.

In a statement, Foxconn declined to comment on its production practices and added, it has “measures in place to ensure that we can continue to meet all global manufacturing obligations.”

“Our facilities in China are following government holiday schedules and will continue to do so until all businesses have resumed standard operating hours,” said Foxconn in a statement.

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