Apple supplier Foxconn says chip crunch has limited impact

Apple manufacturing partner Foxconn said that the ongoing global chip shortage will not affect much of the manufacturing company. The chairman of Foxconn said that the current situation will have “limited impact”.

“Since most of the customers we serve are large customers, they all have proper precautionary planning,” said Foxconn’s chairman Liu Young-way; the manufacturing conglomerate is formally known as Hon Hai Precision Industry Co Ltd. “Therefore, the impact on these large customers is there, but limited.”

Optimistic year ahead – sustained sales

Foxconn chair Liu is optimistic about 2021, he said that the company will perform well in the first half of this year. He added that the relaxation from the pandemic stress across the globe will help sales of electronics increase. Sustained demand for laptops, tablets, gaming consoles, and more will reportedly help Foxconn.

MacBook Air two models
MacBook Air and MacBook Pro

The chip shortage has reportedly affected the smartphone industry. However, the research firm Counterpoint has said that Apple will not be affected by the shortage. Apple’s large size and the tendency of its suppliers to prioritize Apple over other companies will not affect the iPhone maker.

Apple is Foxconn’s largest customer and the manufacturing company will likely give the iPhone maker highest priority. The current ongoing chip shortage is reportedly with the application processors, power management chips, and display driver chips. The crunch appears to have affected some part of the smartphone sector.


Foxconn has reportedly been granted a license to build a plant in Vietnam. The report comes amid tech companies looking for alternatives to China for manufacturing their products. Apple is considering manufacturing many of its products in Vietnam and India.

Apple already manufacturers many of the iPhone models in India. As a result, the price of the iPhone SE, the iPhone XR, and the iPhone 11 is inline with the rest of the world. The company is reportedly also planning to manufacture the iPhone 12 soon; along with a plan to start iPad manufacturing in the near future. 

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