AAPL Stock: 118.3 ( + 0.49 )

Printed from

Foxconn's Chengdu iPad plant resumes operations

updated 11:40 am EDT, Thu June 2, 2011

Fatal accident not factory's only problems

Foxconn's plant in Chengdu, China has finally begun operating again following last month's explosion. The incident killed three people and injured several times that number. In response Foxconn temporarily closed all of its polishing workshops for safety inspections, likely to catch issues related to the combustible dust believed to have caused the Chengdu accident.

The Chengdu factory is devoted almost entirely to iPad production, although it is not the primary iPad assembly site. It is not yet clear to what extent the downtime will affect iPad 2 supplies. Foxconn has also had other problems at Chengdu, which may ironically balance things out, notes Ticonderoga Securities analyst Brian White.

"Our meetings today indicate that the Chengdu facility has been held back by yield issues on certain outside components; thus, the operation may not have reached the optimal utilization rate," he says. "Therefore, the explosion in Chengdu may result in more of an equilibrium situation with certain component vendors, rather than a shortage situation. Netting this all out, we believe the production of iPad 2 will be supply constrained during the June quarter; however, we are not prepared to place the bulk of the blame on the Chengdu operation."

The facility also recently saw a worker commit suicide. Some 14 Foxconn workers have killed themselves since January 2010, the deaths often being blamed on poor working conditions such as low pay, low safety and grueling overtime.

by MacNN Staff




Login Here

Not a member of the MacNN forums? Register now for free.


Network Headlines

Follow us on Facebook


Most Popular


Recent Reviews

Ultimate Ears Megaboom Bluetooth Speaker

Ultimate Ears (now owned by Logitech) has found great success in the marketplace with its "Boom" series of Bluetooth speakers, a mod ...

Kinivo URBN Premium Bluetooth Headphones

We love music, and we're willing to bet that you do, too. If you're like us, you probably spend a good portion of your time wearing ...

Jamstik+ MIDI Controller

For a long time the MIDI world has been dominated by keyboard-inspired controllers. Times are changing however, and we are slowly star ...


Most Commented