SHANGHAI—China’s biggest microchip producer, Semiconductor Manufacturing International Corp., and Apple Inc. supplier Pegatron
Corp. continue to operate factories here during the city’s most-recent COVID-19 lockdown by isolating workers and running a closed-off procedure allowed by local authorities.

PALO ALTO, CA--Electric car maker Tesla Inc. reaffirmed this week that it is talking with the Shanghai municipal government to set up a factory in the region and expects to agree on a plan by the end of the year. However, the company declined to comment on a report that a deal has been reached.