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Foxconn Claims Immunity to Chip Shortages as Auto Makers Cut Forecasts
The chairman of Apple Inc supplier Foxconn said he expects his company and its clients will face only "limited impact" from a chip shortage that has rattled the global automotive and semiconductor industries. "Since most of the customers we serve are large customers, they all have proper precautionary planning," said Liu Young-way, chairman of the manufacturing conglomerate formally known as Hon Hai Precision Industry Co Ltd. Liu said he expected the company to do well in the first half of 2021, "especially as the pandemic is easing and demand is still being sustained."
In contrast to Liu’s statement, car manufacturers such as Volkswagen AG, General Motors Co and Ford Motor Co have cut output as chip capacity has shrunk. Counterpoint Research says the shortage has extended to the smartphone sector, with application processors, display driver chips, and power management chips all facing a crunch. But Apple should face a minimal impact, due to its large size and its suppliers' tendency to prioritize Apple vs. other customers and Apple is Foxconn's largest customer.
Foxconn is looking at other areas for growth, including in electric vehicles (EVs), and Liu said their EV development platform MIH now had 736 partner companies participating. Liu expected it would have two or three models to show by the fourth quarter, though did not expect EVs to make a major contribution to company earnings until 2023. Liu also said the company was still looking for semiconductor fab purchase opportunities in Southeast Asia after not winning a bid to take over a stake in Malaysia-based 8-inch foundry house Silterra.
The chairman of Apple Inc supplier Foxconn said he expects his company and its clients will face only "limited impact" from a chip shortage that has rattled the global automotive and semiconductor industries. "Since most of the customers we serve are large customers, they all have proper precautionary planning," said Liu Young-way, chairman of the manufacturing conglomerate formally known as Hon Hai Precision Industry Co Ltd. Liu said he expected the company to do well in the first half of 2021, "especially as the pandemic is easing and demand is still being sustained."
In contrast to Liu’s statement, car manufacturers such as Volkswagen AG, General Motors Co and Ford Motor Co have cut output as chip capacity has shrunk. Counterpoint Research says the shortage has extended to the smartphone sector, with application processors, display driver chips, and power management chips all facing a crunch. But Apple should face a minimal impact, due to its large size and its suppliers' tendency to prioritize Apple vs. other customers and Apple is Foxconn's largest customer.
Foxconn is looking at other areas for growth, including in electric vehicles (EVs), and Liu said their EV development platform MIH now had 736 partner companies participating. Liu expected it would have two or three models to show by the fourth quarter, though did not expect EVs to make a major contribution to company earnings until 2023. Liu also said the company was still looking for semiconductor fab purchase opportunities in Southeast Asia after not winning a bid to take over a stake in Malaysia-based 8-inch foundry house Silterra.
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