The juice is running out in China

While consumers in Germany are groaning under high electricity and fuel prices, things don’t look much better elsewhere in the world. Electricity is becoming scarce in China – and with it, supplies for many manufacturers. German customers could soon feel this too.

The manufacturers in the second row are often not necessarily known. In the course of the crises in the supply of chips, some names have been mentioned several times in the past few weeks and months – including Foxconn. The contract manufacturer supplies Apple with important products, among others Hardware components without which no new iPhone 13 can be built. Tesla is also high on Foxconn’s customer list.

Apple, Tesla and Co. have to worry about supplies

Exactly such manufacturers are currently struggling with serious problems and production stops in China, but other industries are also affected. The reason: The coal supply in China is currently scarce and increasingly expensive, which has a direct impact on production and electricity prices. In some Chinese provinces, the government has therefore already Introduced “curfew” during which factories stop production must and also private households the electricity is turned off (source: Reuters).

Not only Foxconn is affected. Other manufacturers, including Concraft, manufacturers of acoustic and optical components and plug connections for notebooks, had to partially cease operations. It is not yet known how long the restrictions that began last week will last.

Big manufacturers like Apple or Tesla never rely on just one supplier, but many do Alternatives may also be affected by the restrictions in China. About 30 Taiwanese companies that manufacture in China are said to have shut down or stopped operating for a limited time.

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There is no electricity in China: Rising prices are to be expected

Less available components from preproduction would ultimately mean that fewer electric cars can be built by Tesla or fewer iPhones, MacBooks and iPads by Apple. That in turn means low availability and rising prices for end customers. At the end of the year in the Christmas business, those interested in the iPhone should think twice about whether it is worth the expected surcharge.