Foxconn Chairman: "Semiconductor Shortage Will Last Until Next Year"

Chairman Liu Yangwei: "Other Semiconductor Sectors Also Adversely Affected Following Automotive Semiconductors"

Chairman Li Yong of Foxconn
Photo by EPA Yonhap News

The chairman of Foxconn, a Taiwanese electronics manufacturer famous for producing Apple's iPhones, has warned that the global semiconductor shortage could continue into next year. There are concerns that the semiconductor supply crunch could spread not only to the automotive sector but also to the electronics industry.

On the 30th (local time), Foxconn Chairman Liu Yangwei (劉揚偉) said at the earnings announcement, "The shortage was not evident during the first two months of the first quarter, but we are gradually witnessing these changes," adding, "The semiconductor shortage will continue into next year."

Chairman Liu also stated, "Not only automotive semiconductors but other semiconductor sectors are being affected," and "Due to parts shortages, we expect to be unable to fulfill about 10% of our total orders."

Considering that Foxconn is the world's largest electronics contract manufacturer, analysts say that Foxconn's warning about the semiconductor shortage cannot be overlooked in terms of its impact on the electronics industry. The Financial Times (FT) evaluated, "Foxconn's production trends are an indicator of the global electronics manufacturing industry's trends."

Meanwhile, Samsung Electronics had previously warned about the global semiconductor shortage. Samsung Electronics IT & Mobile (IM) Division President Ko Dong-jin said at the shareholders' meeting held on the 17th, "There is a serious imbalance between global semiconductor supply and demand."

Mark Liu, Chairman of TSMC, also voiced concerns about the global semiconductor supply shortage. At a press conference on the 30th, he said, "It is true that the COVID-19 pandemic has affected semiconductor production volumes," adding, "In addition, the US-China trade tensions have also contributed to this semiconductor shock." The interpretation is that the US-China trade dispute increased uncertainties related to semiconductor supply, and as a result, the global electronics industry significantly increased orders, causing the current semiconductor shock.

Chairman Liu further stated, "Efforts by individual countries to achieve semiconductor self-sufficiency are economically unrealistic," and "Resolving this semiconductor shortage depends on US-China negotiations."

Meanwhile, in the earnings report announced by Foxconn on the same day, the net profit for the fourth quarter of last year was $1.61 billion (approximately 1.83 trillion KRW), down 4% compared to the previous year. Foxconn stated, "The sharp rise in the Taiwan dollar against the US dollar affected the earnings."

This content was produced with the assistance of AI translation services.