Apple Supplier BOE Hit by Power Rationing in Sichuan, Toyota Suspends Production: Report

Apple supplier BOE Technology Group will "make adjustments" at its operations in Sichuan due to power rationing in the region, it 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 added that it has four production lines making displays for hardware devices in the region - two lines producing LCD screens, and two producing AMOLED screens.

The company supplies small volumes of displays to Apple for its iPhone 13 devices and older models, and could potentially supply displays for the upcoming iPhone 14, according to reports from Ming-Chi Kuo, an Apple analyst at research firm TF Securities.

Apple did not respond to a request for comment.

A record-setting heatwave in Sichuan province has led authorities to implement power rationing in several cities, which has subsequently caused a number of companies to cut production. 

On Tuesday, Japanese media outlet Kyodo reported that Toyota had suspended production at its plant in Sichuan. 

Chemical producer Sichuan Xinjinlu and mining company Sichuan Hongda also announced certain units in the region would suspend production.

On Monday Apple supplier Hon Hai Precision Industry Co Ltd declined to confirm the status of its operations in Sichuan but a spokesperson said the impact of the power crunch was "not big".

© Thomson Reuters 2022