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Foxconn sees business picking up

by on31 May 2022

The second half of the year will be better

Taiwan's Foxconn said the second half of the year is heading "in a better direction" as Shanghai's COVID-19 lockdown appears to be easing.

Foxconn chairman Liu Young-way told the company's annual shareholder meeting he was feeling rather confident in the stability of our supply chain for the second half of this year.

The Shanghai government will allow all residents in 'low-risk' areas to return to work and Foxconn is aiming to become the first electric vehicle (EV) maker "not short on material supplies", Liu said.

Foxconn is aiming to capture around five per cent of the global electric vehicle market by the end of 2025 and has said it is hoping to boost its capacity to make EV chips, many of which are small lower-end integrated circuits including those used in power management.

The company warned this month that revenue for its electronics business including smartphones could slip this quarter due to rising inflation, cooling demand and escalating supply chain issues partly due to lockdowns in China.

Foxconn reiterated that while China's strict COVID-19 controls in China had only a limited impact on production as it kept workers on-site in a "closed loop" system, demand for its products in the country has suffered as people remain shut in.


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