Foxconn said the semiconductor crisis would reduce its capacity by about 10%. This is reported by the Nikkei Asia edition with reference to the chairman Foxconn Yong Liu.

This means that the largest customers of the manufacturer, which include Apple, Google, Microsoft and HP, may not receive their orders.

During the first two months of this quarter, supply was still normal, but we see changes taking place this month.

Yong Liu

Foxconn Chairman

According to the authors of Nikkei Asia, Foxconn’s recognition speaks of a very serious crisis in the market:

The Taiwanese company’s recognition is a sign that even heavyweights like Apple are struggling to secure supplies. And they tend to have more resources and a better bargaining position with suppliers than smaller companies.

Loli Lee and Cheng Ting-Fang

Credits Nikkei Asia

It is difficult to say exactly when the crisis will end. So far, Foxconn relies on the opinion of market analysts and believes that the crisis will last at least until the second quarter of 2022, which could negatively affect the supply of companies like Apple.

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