Foxconn says it has not been hindered by the chip shortages in the first two months of this year, but saw the first consequences in March. The company currently expects to be able to supply 10 percent fewer products due to the shortages.
The fact that the chip shortages had no impact on Foxconn in the first two months of 2021 is due to the fact that all of its customers are large companies, according to chairman Young Liu. Foxconn makes products for Apple, Microsoft and HP, among others.
Liu did not specify the period over which the expected production cut of 10 percent applies, but emphasized that this is the current estimate. According to Nikkei, among other things, he reported that products for working from home are particularly affected, because the demand for them has increased in a relatively short time. “The impact on long-ago orders is limited.” According to Liu, the chip shortages will last until at least the second quarter of 2022.
The car industry has been hampered by chip shortages for months, several manufacturers had to temporarily stop the production of cars. Automakers were relatively late last year with chip orders. The fact that Foxconn, as the largest electronics manufacturer in the world, is now experiencing the impact is an indication of the extent of the shortages.