Foxconn has predicted a better supply chain in the second half of the year.
As Shanghai’s COVID-19 lockdown looks to be easing, Taiwan’s Foxconn, the largest electronics manufacturer globally, stated this week that the second half of this year is headed “in a better direction.”
“We are quite confident in the stability of our supply chain for the second half of this year,” Chairman Foxconn Liu Young-way stated during the company’s annual shareholder meeting.
Beginning Tuesday, the Shanghai authorities will be allowing all people in various ‘low-risk’ zones to get back to work.
What does Foxconn want?
According to Liu, Foxconn wants to be the primary electric vehicle manufacturer “not short on material supplies,” referring to a global chip shortfall that has effectively forced carmakers to stop production and harm smartphone output, including Apple, a major client. “A car that costs tens of thousands of dollars cannot be shipped because of a tiny chip worth fifty cents. This has been a pain for our customers,” he stated.
By the end of 2025, Foxconn hopes to have a 5% share of the international electric vehicle industry and has stated that it plans to expand its volume to produce EV chips, which are modest, lower-end unified circuits, such as those used in power management.
With rising inflation, cooling demand, and mounting supply chain challenges, partially due to Chinese lockdowns, the company also warned earlier in the month that electronics segment revenue, which includes smartphones, might drop this quarter.
While China’s tight COVID-19 rules had a minimal impact on manufacturing because they kept workers on-site in a “closed-loop” approach, Foxconn said that the demand for the products has fallen off as the public remains trapped.
Foxconn’s stock rose 2.3%, surpassing the broader market’s 1.2% gain. So far this year, they’ve gained 8.7%, giving the company a market worth of $52.3 billion.