Foxconn blast raises fears of supply chain related product or affected watches

Foxconn's parent company Hon Hai Precision announced on 23rd, Foxconn plant in Chengdu on Friday after the explosion, has stopped all electronic products on the mainland production of polishing workshop. Affected by this, Hon Hai, Taiwan weighted index Monday or 2.91%. Since Apple product has little effect on 24th the stock rebounded by 3% per cent to NT $ 103. However, analysts say, close the job have caused concerns about intelligent product supply chain.

Hon Hai Precision on Monday said preliminary determination combustible dust was blamed for the explosion, all similar processing workshop had been a moratorium on the production, waiting for survey results. Current accident had caused 3 deaths, 15 people were injured. Journalists calling at Foxconn's Shenzhen asking closed-shop continue long, closed workshop involving Apple iPad components of production, but the company has not responded.

according to the Wall Street Journal News, Hon Hai, Taiwan spokesman said the company's testing may be affected by workshop lasts two days. He said that the workshop after passing the test, it is possible to immediately resume production, but is seen as closing time will be long.

"iPad orders processed at the plant may be less than 20%. "Gu Wenjun, senior analyst iSuppli hardware on yangcheng evening news reporter, Foxconn plant large explosion likely limited effect on productivity of iPhone or iPad but damaged workshop and closed jobs at least 1-2 months to restore production capacity. The industry believes, before the cause of the accident is not specifically identified, close jobs might last for a quarter.

However, if the cut-off time extended, it may be from mobile phones to game consoles such as the global electronics supply have a broad impact. "Cause an increase in inventories of parts and components and unfinished products, can also cause packaging late links break. "Analysts say, not including Apple and HP, Hon Hai also for Sony, Dell and Nintendo foundry, cut-off time are important to customers and the group itself. It is learnt that the Hon Hai first quarter net profits to NT $ 14.4 billion, up by 20%, over the previous quarter by 33%.

companies such as Apple and HP comment, but the 24th has closed each of the two companies share prices fell slightly and 0.24%.