Like in other segments, more electronic components are about to face shortages due to the global health crisis.
Foxconn, the biggest contract electronics manufacturer whose main client is Apple, admitted that global chip shortages might last at least until mid-2020. Besides Apple, Foxconn also works with tons of other companies — some are big-name ones — as a components maker.
In an earnings call to its investors, Foxconn CEO Young Liu explained that its supplies in the first two months of the quarter were fine as their clients are “all very big”; however, they’re starting to see changes this month.
The CEO announced that it might not fulfill less than 10% of its orders due to component shortages.
Head of Taiwan research at CLSA Patrick Chen argued that Liu’s comments are quite contradicting since some PC companies already suggested that the situation may be improving.