Foxconn Chairman Young Liu says the current chip shortage could last for a year.
It isn t thought that things will improve before the second quarter of 2022.
Apple manufacturing partner Foxconn reported its quarterly numbers recently and while the company boasted bumper profits, it isn t all good news. In fact, the worldwide chip shortage that is currently causing manufacturing problems for just about everyone could extend into Q2 2022.
That s according to Foxconn Chairman Young Liu via a Bloomberg report published earlier today. Component shortages in the second quarter will be more severe than the first quarter, Chairman Young Liu said on a conference call. He reiterated previous comments that shortages may persist until the second quarter of 2022 and that the impact on its businesses won t exceed 10%.
Foxconn is expecting the existing component shortage to worsen for the remainder of 2021, and it will ultimately impact consumer electronics giants like Apple and Samsung, with some parts already seeing back-orders into 2022.
Foxconn is expecting the existing component shortage to worsen for the remainder of 2021, and it will ultimately impact consumer electronics giants like Apple and Samsung, with some parts already seeing back-orders into 2022.
Apple assembly partner and iPhone manufacturer Foxconn netted $1 billion of income during the second quarter of 2021. Despite beating analysts estimates, the company expects a slowdown due to part shortages affecting the entire industry.
Bloomberg, the company expects shortages to extend into the second quarter of 2022, although it won t see an impact to its business greater than 10%. Foxconn Chairman Young Liu said the component shortages would be worse in the second quarter than they were in the first quarter.
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Foxconn in talks to buy Macronix fab
Earlier today, Foxconn confirmed it is talking to Macronix about buying a six inch fab in Hsinchu.
“Our team has expressed interest in their 6-inch fab and will proceed with the talks,” says Foxconn Chairman Young Liu (pictured).
Liu says that Foxconn needs the fab as a source of ICs for its EV production plans. Foxconn has produced a standard EV chassis which it is making available to auto companies around the world as a basis for their models.
Foxconn is also looking at acquiring an 8-inch fab in Malaysia owned bySilterra.
“Either a 6-inch, 8-inch, or specialty fabs are what we are focusing on. In fact, many automotive chips are made using the 6-inch production process,” says Liu.