Foxconn, an Apple supplier, has restarted some manufacturing in Shenzhen following a Covid-19 outbreak.

• Earlier this week, the company announced a pause in production in Shenzhen due to a surge in Covid-19 cases, which prompted the city to shut down.
• Foxconn can only restart operations on campuses that have both living quarters and production sites.
• The Shenzhen Government's policies have been strictly followed on the campuses of the Taiwan-based firm through a "closed loop" process.

In Shenzhen, a Chinese manufacturing hub, Foxconn, a significant iPhone assembler, has partially restarted production as of Wednesday.

Earlier this week, the company announced that it had halted its operations in Shenzhen due to a surge in Covid-19 cases, which prompted the city to shut down.

Foxconn can only restart operations on campuses that have both living quarters and production sites.

The Shenzhen Government's policies have been strictly followed on these campuses through a "closed loop" process implemented by the Taiwanese firm.

The Shenzhen campus has restarted some operations and is producing after implementing a closed-loop management process and health measures for employees living on campus, as stated by a Foxconn spokesperson to CNBC on Wednesday.

The company will closely monitor these operations with the relevant authorities.

In Shenzhen, Foxconn's primary facilities are located in Longhua Town and Guanlan, yet the company has not disclosed the specific resumption of production or the type of products.

Apple's latest slate of new products, including a budget iPhone, was announced just days before the shutdown earlier this week.

While Foxconn produces some iPhones, iPads, and Macs in Shenzhen, nearly half of iPhones are manufactured at a factory in Henan province, according to a Bank of America research note. As a result, Apple can increase production in Henan province to recover some of its losses.

The firm's analysts stated that Apple/Foxconn can temporarily relocate production to other areas if there is no prolonged lockdown.

A prolonged period of shutdowns may result in a ripple effect on other components, leading to a decrease in production.

Apple did not immediately respond to a CNBC request for comment.

—CNBC’s Jessica Bursztynsky contributed to this report.