The ongoing global shortage of electronic components continues, and Foxconn – which handles manufacturing for Apple, among other major tech heavyweights – has announced that it is starting to see the impact of shortages. According to Young Liu, Foxconn’s CEO, the company will not be able to fulfill some of its orders due to those shortages, which he expects will take until at least the second quarter of next year, Nikkei reports
“The [supply in the] The first two months of this quarter were still okay as our customers are all very large, but we started to see changes this month, ”Liu told investors during the company’s latest earnings call.
The impact of the shortages is not expected to be significant, at least for now: Liu expects the company to miss only about 10 percent of its orders due to parts shortages, citing its customers’ large order volumes. But it’s still a notable miss for Foxconn – and by extension its customers like Apple – that may be facing slowdowns.
Foxconn also saw production delays at the height of the COVID-19 pandemic last spring, following mandatory government shutdowns and quarantined factory workers. Those delays seeped through the supply chain, leading to a later than normal launch in November for Apple’s iPhone 12 lineup. The current slowdown seems less significant by comparison, but if parts remain difficult to obtain, delays could increase later in the year.
Foxconn is the latest company to signal the ongoing shortage of chips and components that has slowed production of everything from next-generation consoles to automobiles. Earlier this month, Samsung warned its investors of a “serious imbalance” in the semiconductor industry as it prepares to cope with the ongoing global chip shortage. Car companies such as Ford, Volkswagen Nissan, and Toyota have had to slow down the production of trucks and cars due to an excess of silicon. Both Sony and Microsoft have cited part shortages as key 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, even tripled, thanks to a combination of unprecedented shortages and demand.