iPhone camera module supplier LG Innotek closed one of its South Korean factories over the weekend after a worker tested positive for coronavirus.
LG Innotek has long been part of Apple’s supply chain, supplying camera components for iPhones. This year, it is also expected to manufacture 3D Time of Flight (ToF) modules for Apple’s next generation iPads and iPhones.
The company shut down its factory in Gumi, the second largest city in Gyeongsangbuk-do, South Korea, on Sunday. The plant will remain closed Monday. This is so that disinfection can be carried out.
Samsung Electronics also shut one of its South Korean factories located in Gumi over the weekend for the same reason. Samsung said that it will implement “all necessary measures” to prevent the spread of the virus. The factory will remain closed until Tuesday afternoon.
Coronavirus has already had a major impact on the electronics supply chain, including Apple. Foxconn, the world’s biggest electronics supplier, has said that it expects its full-year 2020 revenue to take a hit as a result of the outbreak of coronavirus in China. Apple has also pulled its previous forecast for fiscal second quarter earnings as a result of the disruption.
Worldwide deaths caused by the novel coronavirus — named COVID-19 — have now passed 3,000 people. The majority of these remain centered on mainland China, where the virus started. However, in recent weeks there have been more cases breaking out worldwide. After China, South Korea is facing the worst coronavirus outbreak. The country has so far reported 3,730 cases and 21 deaths.
Update: In a research note posted on WeChat, reliable Apple analyst Ming-Chi Kuo said that Apple is diversifying its number of iPhone camera lens suppliers as a result of coronavirus. Specifically, camera lens maker Yujingguang will be losing its exclusivity deal as lens maker for certain iPhone models. Rival firm Daliguang will obtain some of Apple’s orders for the components. This is to help “improve the capacity utilization rate” at a time when some factories in China are struggling to turn out their usual quantity of components.
Source: Reuters
