Contract manufacturer Hon Hai Precision (Foxconn) chair Liu Young-way expressed optimism supply constraints in China will ease in the second half of 2022, as a citywide lockdown in Shanghai is expected to be lifted by tomorrow (1 June), Reuters reported.
At Foxconn’s annual shareholders’ meeting, Liu stated he is confident supplies will stabilise starting in H2, the news agency wrote.
In a translated release of his speech, Liu noted an increase in trade tensions and the impact of Covid-19 (coronavirus) restrictions had not affected Foxconn’s “pace of growth”.
During its Q1 earnings call last month, Liu explained Foxconn was closely monitoring the impact of the pandemic, inflation and geopolitics, but forecast its full-year results at a similar level to 2021.
Net profit in Q1 rose 5 per cent year-on-year to TWD29.5 billion ($1 billion).
Last week, Nikkei Asia reported the development of the next iPhone by contract manufacturers Foxconn and Pegatron was behind schedule due to lockdowns.
Liu told shareholders Foxconn will focus on expanding its capabilities in the electric vehicle, semiconductor and low-orbit satellite industries over the next three years.