Foxconn Reopens iPad 2 Polishing Facilities Except For Chengdu

Foxconn has resumed activity in all its polishing workshops, except for Chengdu, InfoWorld has revealed. The shutdown of the Chengdu facility was triggered by the blast from May 20th and could lead to an iPad 2 stock shortage of 500,000 units in Q2 analysts say.

Foxconn stated that an investigation is still ongoing and did not offer any clue as to when the Chengdu workshop could be reopened. Preliminary findings suggest that the blast occurred because aluminum dust exploded in a ventilation duct.

Foxconn’s factory in Shenzhen manufactures most of the iPads but analysts are skeptical whether this factory can compensate for the downtime at Chengdu. IHS iSupply even suggested last month that the Chengdu downtime could lead to a production loss of around 500,000 iPad 2 devices in Q2.

About 7.4 million iPad 2 pieces should be shipped in Q2, IHS iSupply predicted. The Shenzhen facility can produce only 7.5 million units but it will have to produce 7.8 to 8.1 million units to compensate for the gap between production and shipment. But this is a difficult task to achieve since not all manufactured units pass the final inspection, IHS iSupply added.

On the other hand, Gartner’s Amy Teng thinks that the Chengdu facility accident won’t affect iPad 2 stocks because there are other Chinese factories that manufacture the tablet as well.