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The current global shortage of electronic components continues, and Foxconn – which handles manufacturing for Apple, among other tech heavyweights – has announced that it is starting to see the impact of the shortages. Foxconn CEO Young Liu said the company will not be able to fill some of its orders due to these shortages, which he says will last until at least the second quarter of next year, Nikkei reports.
“The [supply in the] The first two months of this quarter were still good, as our customers are all very big, but we started to see changes happening this month, ”Liu reportedly told investors in the company’s latest earnings call.
The impact of shortages is unlikely to be large, at least for now: Liu expects the company to miss only around 10% of its orders due to parts shortages, citing the large order volumes of his clients. But it’s still a notable failure for Foxconn – and by extension, its customers like Apple – who could be forced to face delays.
Foxconn also experienced a manufacturing slowdown last spring at the height of the COVID-19 pandemic, following mandatory government shutdowns and the quarantine of factory workers. These delays spill over into the entire supply chain, leading to a later launch in November of Apple’s iPhone 12 lineup. The current slowdown, by comparison, seems less drastic, but if parts remain difficult to obtain, delays could accumulate later in the year.
Foxconn is the latest company to report the chip and component shortage that has slowed production of everything from next-gen consoles to cars. Earlier this month, Samsung warned its investors of a “serious imbalance” in the semiconductor industry as it prepares to face the global chip shortage. Automakers like Ford, Volkswagen, Nissan and Toyota have had to slow down the production of trucks and cars due to an overabundance of silicon. Sony and Microsoft both cited parts shortages as major factors in the near-impossible-to-buy status of the PlayStation 5 and Xbox Series X. And the aftermarket value of PC graphics cards has doubled or even tripled as a result. from a combination of shortages and unprecedented demand.
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