News by Dan Seifert on Monday May 23, 2011.
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Hon Hai, the parent company of Foxconn, a company that produces many consumer electronics for American companies, including the Apple iPad, has shut down its workshops that involve polishing of electronic parts and products following an explosion in an Apple iPad production line last week.
The explosion, which injured 16 and killed three workers, was said to be caused by combustible dust at a polishing workshop. As a result, Hon Hai has closed the workshops for inspections that could last two days or more.
The shutdown of these plants could cause supply headaches for Apple, as the Cupertino company can't even keep up with demand for its iPad 2 tablet as it is. Analysts predict that Apple could renegotiate its exclusive production deals with Hon Hai for the iPhone and iPad should the shutdown cause a significant product shortage. [via Wall Street Journal]
Dan is MobileBurn.com's Editor-in-Chief. Based in Poughkeepsie in New York, Dan can be found on Twitter as @DCSeifert.