Apple Supplier Foxconn Says ‘Limited Impact’ Expected from Chip Shortage

The chairman of Apple provider Foxconn stated on Saturday that he expects his firm and its purchasers will face solely “limited impact” from a chip scarcity that has rattled the worldwide automotive and semiconductor industries. “Since most of the customers we serve are large customers, they all have proper precautionary planning,” stated Liu Young-way, chairman of the manufacturing conglomerate formally referred to as Hon Hai Precision Industry Co Ltd. “Therefore, the impact on these large customers is there, but limited,” he informed reporters.

Liu stated he anticipated the corporate to do effectively within the first half of 2021, “especially as the pandemic is easing and demand is still being sustained.”

The world unfold of COVID-19 has elevated demand for laptops, gaming consoles, and different electronics. This precipitated chip producers to reallocate capability away from the automotive sector, which was anticipating a steep downturn.

Now, automotive producers resembling Volkswagen AG, General Motors Co and Ford Motor Co have reduce output as chip capability has shrunk.

Counterpoint Research says the scarcity has prolonged to the smartphone sector, with software processors, show driver chips, and energy administration chips all going through a crunch.

However, the analysis agency predicts Apple will face a minimal affect, attributable to its giant measurement and its suppliers’ tendency to prioritise it. Apple is Foxconn’s largest buyer.

Foxconn is different areas for progress, together with in electrical autos (EVs), and Liu stated their EV growth platform MIH now had 736 accomplice firms taking part.

He anticipated it will have two or three fashions to point out by the fourth quarter, although didn’t count on EVs to make an apparent contribution to firm earnings till 2023.

Liu additionally stated the corporate was nonetheless in search of semiconductor fab buy alternatives in Southeast Asia after not successful a bid to take over a stake in Malaysia-based 8-inch foundry home Silterra.

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