Foxconn anticipates “limited impact” from chip shortage

Liu Young-way, chairman of Foxconn, has said he anticipates limited impact from the ongoing global chip shortage on Foxconn and its clients.

Foxconn is a Taiwan-based multinational electronics manufacturer, who counts Apple as their biggest client.

Liu expressed optimism about the Foxconns’s prospects in the first half of 2021, “especially as the pandemic is easing and demand is still being sustained.”

The shortage is currently destabilising the automotive and semi-conductor industries, as its traditional chip suppliers have changed their focus because of the increased demand for laptops, gaming consoles, and other electronics during the pandemic.

Automotive manufacturers such as Volkswagen AG, General Motors and Ford Motor have slashed production as the chip supply has dwindled.

In addition, Liu said their EV development platform now had 736 partner companies, and that it expected it would have two or three models to show by the fourth quarter. However, Liu did not expect EVs to make a significant impact on the company earnings until 2023.

Liu also said Foxconn was still looking for opportunities to purchase semiconductor fabrication facilities in Southeast Asia, despite failing to win a stake in an 8-inch foundry house called Silterra in Malaysia.

“Since most of the customers we serve are large customers, they all have proper precautionary planning,” said Liu. “Therefore, the impact on these large customers is there, but limited.”

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