Foxconn said that during the first two months of this year it was not affected by the chip deficits, but saw the first effects in March. The company currently expects to be able to deliver 10 percent less products due to shortages.
The chip shortage in the first two months of 2021 has no impact on Foxconn, according to the chairman Young Liu, due to the fact that all its customers were well stocked. Foxconn makes products for Apple, Microsoft and HP, among others.
Liu did not specify the period over which the expected production restriction of 10 per cent will be affected, but stressed that this is the current estimate. According to Nikkei, Om reported that products for working at home are particularly affected, because the demand for these products has increased in a relatively short time. “The impact on orders made a long time ago is limited.”
According to Liu, chip deficits persist until at least the second quarter of 2022.
The automotive industry has been hampered for months by chip shortages, several manufacturers had to temporarily stop production of cars. Car manufacturers were relatively late last year with chip orders. The fact that Foxconn, as the world’s largest electronics manufacturer, is now experiencing the impact is an indication of the extent of the deficits.