TAIPEI (Reuters) – Taiwan’s Foxconn said on Thursday it would “cautiously” resume production at its main factories in China as the major Apple Inc supplier warned revenue will be hit this year by the coronavirus epidemic.
Its warning comes just days after Apple rescinded its March quarter sales guidance because of slower-than-anticipated resumption of production in China and weak demand there, the world’s biggest smartphone market.
Foxconn, the world no. 1 contract manufacturer whose clients also include Huawei, said plants in countries such as Vietnam, India and Mexico continued to be operating at full capacity with expansion plans under way as it seeks to minimize the impact of the virus.
It said the outbreak will have a negative impact on its full-year revenue, without disclosing details.
Reuters reported earlier this month that Foxconn could see a “big” production impact, with shipments to customers including Apple facing disruption due to the prolonged Chinese factory halt, and that the company was utilizing factories in other countries to fill the gap.
Foxconn, formally called Hon Hai Precision Industry Co Ltd, hopes to resume half of its production in China by month-end, a source with direct knowledge of the matter told Reuters last week.
Shares of Foxconn fell 1.2% on Thursday, trailing a decline of 0.3% in the benchmark index.
Reporting by Yimou Lee and Twinnie Siu; Editing by Kenneth Maxwell