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Plant Shut Downs in Malaysia could ding Apple's Supply Chain but is unlikely to affect iPhone 12 Production

1 x cover iphone 12


With a fresh round of supplier factory closures enforced by Malaysia, and the virus disrupting operations in much of the rest of the world, some of Apple's supply chain has yet to fully recover, according to a new Bloomberg report.


A new two-week lockdown in Malaysia is affecting several key suppliers that have operations in the country. Murata Manufacturing Co., Renesas Electronics Corp. and Ibiden Co., which make chips and circuit boards for Apple, have halted production there.


Micron Technology Inc., which makes memory chips for Apple devices, is also impacted, but said an exemption allows "limited semiconductor operations to continue." Texas Instruments Inc. and On Semiconductor Corp. have facilities in Malaysia, too.


Apple has suppliers and operations in other countries that have been hammered by the virus, including Italy, Germany, the U.K. and South Korea.


These struggles have yet to derail plans of Apple's 5G iPhone launch for this fall. During China’s factory shutdown in February, Apple was able to build a limited number of test versions of the new models, one of the people familiar with the company’s supply chain said. For more on this read the full Bloomberg report titled "Apple’s Supply Chain Woes Linger Even as China Recovers," that is on their technology home page today.


In early March Apple's iPhone assembler Foxconn got the word out that they would be back to normal production by the end of March. TSMC announced on Monday that they were taking measures to ensure that Apple's key A14 chip for the iPhone 12 remains on track.


Apple usually has multiple suppliers for every key part of the iPhone and so any one announced plant closure won't necessarily translate into instant bad news for Apple's iPhone 12.


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