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Apple Suppliers, Top Chipmaker Succumb to China Lockdowns

  • SMIC, Pegatron among those warning of business declines
  • Covid Zero policy is straining tech giants as demand wavers
Updated on

China’s biggest chipmaker and a major iPhone supplier cut their outlooks for the second quarter, joining a growing list of manufacturers warning about the fallout from lockdowns aimed at containing the country’s worst Covid outbreak in two years.

Semiconductor Manufacturing International Co. estimates a month-long lockdown in Shanghai could spur component shortages and logistics tangles and erase roughly 5% of its output in the second quarter. And Pegatron Corp. slashed its outlook for notebook shipments to a decline of between 5% and 10% from the first three months-- versus previous guidance for a rise of 25% to 30%.