A major producer of Apple's iPhone has stopped production because of the lock down in Shanghai.
Production at two of the company's factories in China has been temporarily stopped.
The announcement came even as authorities relaxed some of their coronaviruses regulations.
It means that some of the 25 million people in the city can leave their homes for the first time in weeks.
The city was locked down in March due to infections.
In a stock exchange filing, Pegatron said it had stopped operations at its factories in Kunshan and Shanghai due to local government requirements for Covid-19 prevention.
The company said it would work with authorities to resume operations as soon as possible.
According to a Japanese newspaper, major Apple MacBook manufacturer and iPad maker have paused their activities in Chinese cities.
When contacted for comment by the BBC, Pegatron didn't give any more information. Apple, Compal andQuanta did not respond to requests for comment.
The shutdowns are expected to have an impact on production, according to an analyst.
He estimated that the production of 3 million iPhones has been affected so far this month.
The production of 2 million iPads and 1 million MacBooks may also be affected.
The supply chain for Apple and other parts of the iPhone is in trouble because of the Pegatron closings.
The factory in Shenzhen that assembles Apple's phones was halted last month.
It shifted production to other manufacturing sites, while restarting operations in Shenzhen with employees working in a closed loop system, which saw staff living and working at the plant.
Millions of people in major cities in China have been affected by shutdowns since the beginning of the Pandemic.
The city of Shanghai is home to the world's biggest port and is currently locked down, making it the largest to date.