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Foxconn chairman says expects ‘restricted impression’ from chip scarcity on shoppers By Reuters

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© Reuters. The Foxconn logo can be seen on a glass door in his Taipei office building

TAIPEI (Reuters) – Chairman of Apple Inc (NASDAQ 🙂 supplier Foxconn said Saturday he expects his company and customers will have “limited impact” from a chip shortage that has rocked the global automotive and semiconductor industries .

“Since most of the customers we serve are large customers, they all have adequate retirement planning,” said Liu Young-way, chairman of the manufacturing conglomerate formerly known as Hon Hai Precision Industry Co Ltd

“So the impact on these large customers is there but limited,” he told reporters.

Liu said he expected the company to do well in the first half of 2021, “especially as the pandemic subsides and demand continues.”

The global spread of COVID-19 has increased the demand for laptops, game consoles, and other electronics. This led chipmakers to move their capacities outside of the auto sector, which was anticipating a sharp downturn.

Now automakers like Volkswagen AG (OTC :), General Motors Co (NYSE :), and Ford Motor (NYSE 🙂 Co have reduced production as chip capacity has shrunk.

According to Counterpoint Research, the shortage has spread to the smartphone sector and application processors, display driver chips and power management chips are facing a crisis.

However, the research firm predicts that Apple will have minimal impact due to its size and the tendency of its suppliers to prioritize. Apple is Foxconn’s largest customer.

Foxconn is reviewing other growth areas, including electric vehicles, and Liu said 736 partner companies are now involved in the EVH development platform MIH.

He expected two or three models to be seen by the fourth quarter, but didn’t expect electric vehicles to make an obvious contribution to the company’s bottom line until 2023.

Liu also said the company is still looking to purchase opportunities for semiconductor factories in Southeast Asia after failing to win an offer to acquire a stake in Malaysia-based 8-inch foundry company Silterra.

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