May 20,2011

iPad2 Supply May be Disrupted as Foxconn's Plant in Chengdu Explodes and Kills Two

By CSC staff, Shanghai

An explosion has occurred at Foxconn's new manufacturing facilities in Chengdu, the capital city of Sichuan province, China, a plant that opened last year in large part to support increased iPad2 production.

 

So far two people have been dead and 16 injured, 3 of whom are in severe condition in hospital, according to local police services.

 

At around 19:00 in China, Foxconn Chengdu manufacture plant got an explosion that occurred in building A5, which is said to house iPad 2 production.

 

It is obviously unclear at this point just how much of an effect the incident may have on Foxconn's iPad production capabilities. Apple has been struggling to keep up with demand for the new tablet device, seeking to improve component yields and production output to address stock shortages and lengthy shipping estimates.

 

Foxconn decided to build the plant in October, 2009 and, after adding money and making the investments up to US$10 billion, the iPad production was plugged in the plant. The plant was built up in just 76 days, breaking the global record of Foxconn's plant-building speed. According the local government, after the plant meets its capacity, the annual output will be RMB 200 billion.   

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