Global semiconductor shortage puts Foxconn in dilemma; plans 10% lesser shipments

The global semiconductor slump could delay the launch of Apple’s upcoming iPhone 13 launch, hinted Foxconn. The Cupertino tech giant’s iPhone contract manufacturer stated that this major impediment in the supply chain will also impact the ‘home economy products,’ however, previous orders will not be affected by this constraint. 

The global pandemic in 2020 has severely affected the manufacturing of leading technology products all over the world, which eventually affected the revenue of the companies. To fix the situation, tech companies have announced the biggest ever launches in 2021, but the commitment cannot be fulfilled due to the massive shortage of chipsets. 

Tokyo stock exchange Nikkei pointed out that the worldwide sag of semiconductors would decrease the shipments of Foxconn by 10 percent this year. Foxconn’s slump has been noticed after its chairman Young Liu showed its earnings. The chairman proclaimed that due to the current hindrances, the company will ship 10 percent lesser products than it had planned earlier. As of now, it is yet to be confirmed for how long this situation would exist. Liu somehow projected that the same situation will linger at least till the second quarter of 2022.

Foxconn is considered to be one of the leading contract manufacturers of all the leading technology companies, including Apple, Google, Microsoft and HP.

The same chain was observed for Foxconn last year when Coronavirus was crippling the world’s economy, which ultimately delayed the launch of the iPhone 12 series in November. The bigger picture is that the shortage will not only affect Foxconn, but numerous other global companies such as Microsoft, Samsung, and Sony also reported the same. Apart from electronics and IT products, automobiles is another major sector that is struggling with this issue. Foxconn intended to join the EV rat race, but this plummet of processors will keep aside all its plans and efforts.

Your take?
What you think of the global semiconductor shortage and iPhone 13 launch delay, share your views with us. Will this situation affect the tech industry until 2022 or beyond that? What’s your favourite brand, model in this category? What would you like to read about? Share your thoughts with us:
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