China's tech supply chain reels as infections soar, demand sours

Silver lining: Dealing with COVID wave now 'could pave way for recovery'

20230102 supply chain top

China's abrupt dismantling of its zero-COVID policy has left many of the country's tech manufacturers scrambling to deal with a sudden rise in infections.

CHENG TING-FANG and CISSY ZHOU, Nikkei staff writers

TAIPEI/ HONG KONG -- China's tech supply chain is heading into the new year facing the twin challenges of slumping demand and staffing chaos caused by Beijing's abrupt U-turn on COVID controls.

In a sign of the gloomy outlook for consumer electronics, Apple has notified several suppliers to build fewer components for AirPods, the Apple Watch and MacBooks for the first quarter, citing weakening demand, according to Nikkei Asia's supply chain checks with several component suppliers.

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