Foxconn expects a more stable supply chain in the second half of this year

Taiwanese electronics manufacturer Foxconn expects improvements in its supply chain in the second half of this year. That said the chairman of the company at the annual shareholders’ meeting.

According to Foxconn, the second half of 2022 is moving ‘in a better direction’, partly as covid lockdowns in Shanghai appear to be easing, writes news agency Reuters. “We are confident in the stability of our supply chain for the second half of this year,” Foxconn chairman Liu Young-way said at the company’s annual shareholders’ meeting.

The electronics manufacturer indicated on Tuesday that it wants to become the first car manufacturer that “has no shortage of materials and supplies”. Foxconn is referring to the continuing shortages in the chip sector. These shortages affect, for example, the production of consumer electronics and cars, two markets in which Foxconn is active. The manufacturer produces, among other things, Apple’s iPhones and is also working on electric cars.

Foxconn warned earlier this month that its sales from electronics such as smartphones will decline in the coming quarter due to inflation, reduced demand and supply chain issues, partly due to the lockdowns in China. For example, the manufacturer had to halt production in the Chinese city of Shenzhen in March due to a lockdown due to a new corona wave in the country. The company now expects the situation regarding its supply chain to improve later this year.