Apple Supplier Foxconn Warns Component Shortage Will Last Until 2022
One of Apple’s biggest suppliers, Foxconn, has warned the global shortage of electronic components is only getting worse and predicts the problem will last until at least 2022.
According to the Financial Times, Foxconn chair Young Liu told investors during an earnings call that the crippling chip shortage will worsen before it gets better.
“In the first two months of the first quarter, the impact [of the shortage] was not so palpable, but we are gradually seeing that change,” Yiu said.
He also quoted research reports and said the shortage will likely persist until 2022.
Foxconn is the world’s largest contract electronics manufacturer and it counts Apple as one of its major customers, assembling the bulk of iPhones for the US tech giant.
Foxconn’s dire warning follows Samsung’s similar sentiment after the company said there is a “serious imbalance” in global chip demand.
It also comes as Foxconn reported slightly lower Q4 2020 results than expected, with net profit falling 4 per cent to $NT 46 billion ($2.1 billion AUD).
The company said it is “cautiously optimistic” about its financial performance for the rest of 2021, provided there was no more disruption to production caused by the pandemic and improved supply of components.
Foxconn’s revenue increased to $NT5.36 trillion from $5.34 trillion the previous year.