Foxconn warns of AI chip shortages, new factories may be needed

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Taiwanese electronics manufacturer Foxconn warns of an impending shortage of AI chips. Due to the limited production capacity, new factories may have to be added, says chairman Liu Young-way.

Global economic uncertainty will somewhat impact demand for consumer products, Foxconn said. The manufacturer, which is known for its iPhone production, expects that the demand for servers for AI applications will ‘naturally’ be high in the near future. “To keep up with demand, new factories may have to be built,” says the chairman.

Despite the expected supply chain problems, Foxconn expects to deliver better results this year than in 2023, writes Reuters news agency. In November last year, Foxconn already indicated that it had a “relatively conservative and neutral” outlook for 2024.

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