Apple supplier Foxconn to restart limited production at Shenzhen operations
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Apple (NASDAQ:AAPL) supplier Foxconn (OTCPK:HNHAF) said it would restart production at its Shenzhen operations on a limited basis following an okay from the Chinese government on the groundwork that its employees live and work in a bubble due to rising COVID-19 cases in the city.
The Shenzhen plant, which produces some Apple (AAPL) iPhones, in addition to other electronics, is able to restart production and operations after it adopted a "closed-loop management" system, Foxconn said, a plan which was used in the most recent Olympics and was widely seen as successful, Reuters reported.
"Some operations have been able to restart and some production is being carried out," Foxconn (OTCPK:HNHAF) said in a statement obtained by Reuters. 
"This process, which can only be done on campuses that include both employee housing and production facilities, adheres to strict industry guidelines and close-loop management policies issued by the Shenzhen government," Foxconn (OTCPK:HNHAF) added.
Apple (AAPL) shares rose nearly 2% to $157.70 in premarket trading on Wednesday.
Earlier this week, Foxconn (OTCPK:HNHAF), also known as Hon Hai Precision Industry, said it had suspended production at its Shenzhen manufacturing facility after China locked down 17.5 million residents in the Chinese city as it attempts to control the latest wave of the pandemic.
In addition to Foxconn, China said it would allow some construction sites resume work, Reuters added.
Foxconn, which also reported fourth-quarter results on Wednesday, said revenue could decline 3% in the next year as the global semiconductor shortage continues to impact smartphone production.
Earlier this week, Foxconn (OTCPK:HNHAF) was reported to be looking into a $9 billion facility in Saudi Arabia to produce semiconductors and electric vehicle parts.
On Monday, Morgan Stanley said that Apple (AAPL) would only see a "minimal" impact from Foxconn shutting its Shenzhen, China plant.