Contract electronics maker Foxconn is aiming to branch into the electric vehicle market but says it wants to ensure it is “not short on material supplies”.
Foxconn chairman Liu Young-way told the company’s annual shareholder meeting the company sees the second half of 2022 heading “in a better direction” in terms of supplies as Shanghai begins to lift Covid-19 restrictions.
The Shanghai government will allow all residents in ‘low-risk’ areas to return to work from Tuesday.
“We are quite confident in the stability of our supply chain for the second half of this year,” said Liu, adding that the group will seek to avoid troubles such as the prolonged global chip shortage that forced carmakers to halt production and hurt smartphone production, including for its major client Apple.
“A car that costs tens of thousands of dollars cannot be shipped because of a tiny chip worth 50 cents. This has been a pain for our customers,” he said.
Foxconn is aiming to capture around 5% 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 while that 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. But it said that demand for its products in the country had suffered, as people remain shut in.
- Reuters with additional editing by Sean OMeara