Power Rationing in Sichuan Harms Apple Supplier BOE, and Toyota Suspends Production: Report

BOE Technology Group, an Apple supplier, stated in a stock market statement on Tuesday that it will "make changes" at its plants in Sichuan owing to power rationing in the area.

The firm stated that it was in contact with authorities and that it expected "no significant impact on its overall operating performance."

It also stated that it has four production lines in the region that make displays for hardware devices, with two lines generating LCD panels and two creating AMOLED screens.

According to Ming-Chi Kuo, an Apple analyst at research firm TF Securities, the company supplies Apple with limited numbers of screens for its iPhone 13 handsets and previous generations, and might potentially supply displays for the next iPhone 14.

A request for comment from Apple was not returned.

A record-breaking temperature in Sichuan province has prompted officials to adopt power rationing in numerous cities, causing a number of businesses to reduce production.

Toyota has halted production at its Sichuan facility, according to the Japanese media agency Kyodo.

Sichuan Xinjinlu, a chemical factory, and Sichuan Hongda, a mining firm, both declared that some plants in the region will be shut down.

Hon Hai Precision Industry Co Ltd, an Apple supplier, declined to confirm the state of its operations in Sichuan on Monday, but a spokeswoman claimed the impact of the power outage was "not significant."