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Foxconn expects a more stable supply chain in the second half of the year

By Cookie Monster - on 1 Jun 2022, 12:00am

Foxconn expects a more stable supply chain in the second half of the year

Image source: Reuters

Foxconn says its supply chain is likely to be heading "in a better direction" in the second half of the year.

Foxconn chairman Liu Young-way revealed during the company's annual shareholder meeting that he is "quite confident in the stability" of the supply chain. However, Liu warns revenue from its electronics business could drop this quarter due to inflation, lower demand and worsening supply chain issues from  lockdowns in China.

Nonetheless, Liu stated that the company aims to be the first electric vehicler (EV) maker that is "not short on material supplies". Foxconn wants to capture about 5% of the global EV market by the end of 2025 and plans to increase its EV chip-making capacity.

Liu's forecast is slightly more positive compared to his peers in the industry. Intel CEO Pat Gelsinger believes the chip shortage could stretch until 2024 due to the lack of key manufacturing tools. ASML CEO Peter Wennik also shared similar sentiments, claiming that the supply of machines from his company will be constrained for the next two years. Contract manufacturing firm Flex predicts the chip shortage could last into 2023.

Source: Reuters

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