COVID-19 pandemic has brought major changes not only to the lives of people but also changed the way people used to live. To stop the spread of the virus, people prefer to stay at home and work from home which in turn increased the demand for electronics, gaming consoles, laptops, etc. This is a positive change, but it has caused a shortage of chips all around the globe.
The shortage of chips has shaken the semiconductors and automotive industry. Major tech leaders all around the globe are complaining about the scarcity of chips as the demands are increasing. But Apple Inc’s. (NASDAQ: AAPL) supplier Foxconn has disclosed the positive news for the firm.
The Chairman of Foxconn has stated that it is true that the world is facing a shortage of chips, but it will make sure that its clients will observe the limited impact of the scarcity of the chips. He further added that its majority of clients are related to the big industry and they all have preventive measures.
It is wrong to say that these firms will not face the impact of the shortage, but the impact is not that much huge. Auto manufacturers such as General Motors, Volkswagen, Ford have reduced the production capacity as the availability of chips dropped.
Furthermore, the research demonstrated that this shortage would impact the smartphone sector as well. But Apple will not face as much impact as other giants. The Chairman of Foxconn stated that Foxconn is exploring other areas for growth, such as EVs. He disclosed that nearly 736 partners joined the firm in their EV growth platform MIH.
Foxconn is planning to disclose the two or three models by the Q4 of the firm, but it is not expecting any revenue from this business till 2023. It is also exploring the new options of buying in the semiconductor industry.