SHANGHAI: Apple supplier BOE Technology Group Co Ltd will "make adjustments" at its operations in Sichuan because of power rationing in the region, the company said in a stock market filing on Tuesday. The company said that it was communicating with authorities and expected "no major impact on its overall operating performance".
It further said that it has four production lines in the area, two of which produce LCD screens and two of which produce AMOLED screens, for making displays for hardware products.
According to estimates from Ming-Chi Kuo, an Apple analyst at research firm TF Securities, the company provides Apple with small quantities of displays for its iPhone 13 handsets and older models, and it may also provide displays for the next iPhone 14. A request for comment from Apple was ignored.
Authorities in Sichuan province implemented power rationing in a number of cities as a result of a heatwave that broke all previous records. As a result, some businesses reduced production.
The biggest battery manufacturer in the world, CATL, will halt operations at its factories in the city of Yibin from August 15 to 20 due to the blackouts, local news outlet Jiemian reported on Tuesday.
On Tuesday as well, the Japanese media agency Kyodo reported that Toyota has halted operations at its Sichuan plant. Both the mining firm Sichuan Hongda Co Ltd. and the chemical business Sichuan Xinjinlu announced that some operations in the area would cease output.
A representative for Apple supplier Hon Hai Precision Industry Co Ltd said the impact of the power shortage was "not large" on Monday but declined to clarify the status of its operations in Sichuan.
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