Some Apple (AAPL) and Tesla (TSLA) Suppliers Suspend Production in China For a Few Days

September 27, 2021 8:14 AM EDT

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Several Chinese suppliers for Apple (NASDAQ: AAPL) and Tesla (NASDAQ: TSLA) have suspended production for several days in order to comply with tighter energy consumption policies.

As a result, supply chain flows are at risk ahead of the peak season for electronic goods. Unimicron Technology Corp is one of the suppliers that reported a halt to the production process to "comply with the local governments' electricity limiting policy".

China has tightened emissions standards amid low coal supplies, which is likely to drag on the economic growth rate of the country.

Similarly, Hon Hai’s affiliate Eson Precision said it halted production until Friday. Foxconn, Apple’s largest supplier, Foxconn had to "adjust" a small part of its capacity in Kunshan.

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