9/26/2021, 10:33 PM (Source: TeleTrader)
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Apple, Tesla suppliers stop production over China's energy policy

Key suppliers for Apple Inc. and Tesla Inc. have stopped production at their facilities in order to better comply with the Chinese government's tighter energy usage policies, causing further disruptions to the supply chain.

Eson Precision Engineering, a supplier of mechanical parts for the firms, stated on Sunday that they will be shutting down production until Friday. At the same time, Apple's circuit board maker and speaker component supplier both stated they will need to stop manufacturing parts until the end of the month. Suppliers that haven't been affected thus far have noted they are preparing for all eventualities.

Lastly, Nikkei Asia reported that chip packaging and testing service providers supplying Intel, Nvidia, and Qualcomm have also gotten official notices from the government to suspend production for several days. Chinese officials began a crackdown on energy consumption in order to cut its carbon emissions and comes on the heels of rising coal and natural gas prices.

Baha Breaking the News (BBN) / OL