Apple Supplier Foxconn Expects Shipments to Be Impacted by Global Chip Shortage

Apple supplier Foxconn today said that it expects shipments to be cut by 10 percent due to the global chip shortage, reports Nikkei. In an earnings call, Foxconn chairman Young Liu said that the first two months of the quarter were okay, but the company "started to see changes happening this month."

iphone12 lineup wide
Foxconn did not mention Apple specifically, but it is a major Apple supplier and this perhaps suggests that the ongoing chip shortage will ultimately impact Apple. Foxconn is responsible for much of the assembly of Apple's iPhone models, but it does work with other companies like Google and Microsoft.

Apple has more resources than many other smaller companies that have already been hit by chip shortages, but it could run into trouble sourcing supplies for upcoming devices as the chip issues continue. Foxconn expects the shortage to extend into the second quarter of 2022.

Foxconn will ship 10 percent fewer products than planned, but "the impact on the orders that were secured a long time ago is rather limited," so it's not clear if and when Apple might be affected.

The ongoing chip shortage was caused by supply chain issues that arose during the global health crisis and weather-related events like the freeze in Texas that shut down Austin chip plants. As chip factories struggled to keep up with standard outputs during the pandemic, demand surged as people purchased devices for an at-home lifestyle, leading to higher prices. Electronics companies bought up all available supply, and chip makers are running at capacity.

With manufacturing capabilities limited, chip makers have focused on higher-end chips for smartphones and game consoles rather than the more affordable, less-advanced and less profitable chips used for everyday devices such as cars.

Because of this focus on higher-end manufacturing, the car industry has been most heavily impacted so far, and manufacturers like General Motors and Ford have had to slash production, but major tech companies could also be affected going forward.

Tag: Foxconn

Top Rated Comments

im2fast4u Avatar
11 months ago
Who’s going to chip in
Score: 8 Votes (Like | Disagree)
d5aqoëp Avatar
11 months ago

iPhone 13 won’t be that great anyway
Small notch, 120hz screens on Pro, Always on LTPO displays, bigger batteries are enough for me.
Score: 8 Votes (Like | Disagree)
ElectricPotato Avatar
11 months ago
"the freeze in Texas that shut down Austin chip plants"

Perhaps the plant owners will petition for common sense regulation to make the Texas grid reliable.
Score: 6 Votes (Like | Disagree)
mnsportsgeek Avatar
11 months ago
Everyone's impacted. Whoever says they aren't is only saying so publicly while employees work to minize the impact.
Score: 5 Votes (Like | Disagree)
Populus Avatar
11 months ago

Small notch, 120hz screens on Pro, Always on LTPO displays, bigger batteries are enough for me.
Touch ID would be the selling point for me.
Score: 4 Votes (Like | Disagree)
Doomtomb Avatar
11 months ago
iPhone 13 won’t be that great anyway
Score: 3 Votes (Like | Disagree)

Related Stories

Apple car wheel icon feature triad

Apple Could Use Contract Manufacturers Like Foxconn or Magna for Apple Car Assembly

Thursday March 11, 2021 2:27 am PST by
Amid rumors that Apple is working on an Apple-branded car that will come out in the next decade, Bloomberg's Mark Gurman has published an article about Apple's troubled search for an existing automaker partner to build the vehicle, and how the company's more traditional approach to launching new products could better work in its favor. Reports first surfaced in January suggesting that Apple...
iPhone 13 Notch Feature

Apple Supplier TSMC Reportedly Begins Production of A15 Bionic Chip for iPhone 13

Tuesday May 25, 2021 11:36 pm PDT by
Following a report indicating that production would begin ahead of schedule, longtime Apple supplier TSMC has now officially kicked off production of Apple's upcoming A15 chip for the iPhone 13 lineup, expected later on in the second half of this year, according to a new paywalled report from DigiTimes. The A14 Bionic chip, which first got announced in the iPad Air and then made its way to...
face id scan

Apple Making Face ID Sensor Chip Smaller on Upcoming iPhones and iPads

Friday May 14, 2021 4:00 am PDT by
Apple is intending to use a significantly smaller Face ID sensor chip in iPhones and iPads from late this year onwards, according to DigiTimes. Apple has reportedly chosen to scale down the die size of the VCSEL chips used in Face ID's scanner. The move will help Apple cut production costs since more chips can be produced on one wafer, reducing total wafer output. The redesigned VCSEL...
iPhone 13 Notch Feature

Mass Production of A15 Chip for iPhone 13 Set to Begin Ahead of Schedule in Late May

Tuesday April 6, 2021 7:29 am PDT by
Longtime Apple supplier TSMC is set to begin mass shipments of Apple's upcoming A15 chip for the iPhone 13 ahead of schedule at the end of May, according to a snippet of a full report set to be published tomorrow by DigiTimes. The new chip will be based on an enhanced version of the 5nm process, which first debuted in the A14 Bionic with the 2020 iPad Air and iPhone 12 lineup. While the full ...
iphone 13 yellow

Apple Supplier Foxconn Raises Employee Bonuses Ahead of iPhone 13 Production

Friday May 7, 2021 3:58 am PDT by
Apple supplier Foxconn, which serves as the main iPhone manufacturer, is taking measures to expand its workforce by offering increased bonus pay to new recruits in Zhengzhou, China, ahead of when production of the iPhone 13 is set to get underway. According to the South China Morning Post, the newest raise in bonus is the third instance this month where the supplier has attempted to attract ...
m1x feature dark blue

Shaky Rumor Claims Redesigned MacBook Pros Will Feature 'M1X' Chip and Remove the Front Logo

Friday May 21, 2021 7:27 am PDT by
A questionable report is today claiming that Apple's next-generation MacBook Pro models will feature an "M1X" chip and remove the "MacBook Pro" logo from below the display. The report from 9to5Mac says that "a source with a decent track record," iOS developer Dylandkt made the claims. According to Dylandkt, "Apple's planned name for the MacBook Pro chips" is the "M1X."The M1X is an extension ...
tsmc semiconductor chip inspection 678x452

Construction of Apple Supplier Plant in Arizona 'Well Under Way,' Will Manufacture Chips by 2024

Wednesday June 2, 2021 4:15 am PDT by
Apple chip supplier TSMC is moving ahead with plans for a manufacturing plant in Phoenix, Arizona, according to Bloomberg. In November of 2020, Phoenix city officials approved financial incentives and government support for the new plant. The city agreed to provide $200 million in support to build infrastructure including roads and sewers, according to a notice from the city's council....
m2 feature

Apple Silicon M2 Chip Coming to Wave of New Macs

Monday May 24, 2021 2:27 am PDT by
Apple's more powerful "M2" chip is set to come to a wave of new Macs, bringing significant performance and efficiency improvements to a range of new models, according to recent reports. Bloomberg's Mark Gurman previously said that Apple is working on higher-end Apple silicon chips that are expected to "significantly outpace" the performance of the latest Macs that still contain Intel chips,...

Popular Stories

iPhone 14 Mock pill and hole thumb

ProMotion Now Expected to Remain Exclusive to iPhone 14 Pro Models, Not Expand to Entire Lineup

Sunday January 16, 2022 8:56 am PST by
Continuing the tradition set with the iPhone 13 Pro, only the highest-end iPhone 14 models will feature Apple's ProMotion display technology, according to a respected display analyst. Ross Young, who on multiple occasions has detailed accurate information about Apple's future products, said in a tweet that ProMotion will not be expanded to the entire iPhone 14 lineup and will remain...
safari icon blue banner

Safari Bug Allows Websites to Track Your Recent Browsing Activity in Real Time

Sunday January 16, 2022 3:37 pm PST by
A bug in WebKit's implementation of a JavaScript API called IndexedDB can reveal your recent browsing history and even your identity, according to a blog post shared on Friday by browser fingerprinting service FingerprintJS. In a nutshell, the bug allows any website that uses IndexedDB to access the names of IndexedDB databases generated by other websites during a user's browsing session....
ipad air 4 video

New iPad Air Rumored to Launch This Spring With A15 Chip, 5G, Center Stage Camera, and More

Saturday January 15, 2022 8:05 pm PST by
Apple is planning to release a fifth-generation iPad Air with similar features as the sixth-generation iPad mini, including an A15 Bionic chip, 12-megapixel Ultra Wide front camera with Center Stage support, 5G for cellular models, and Quad-LED True Tone flash, according to Japanese blog Mac Otakara. Citing reliables sources in China, the report claims that the new iPad Air could be...
Unlikely Products 2022 Feature

Six Rumored Apple Products You're Unlikely to See This Year

Saturday January 15, 2022 2:06 pm PST by
Much has been said about what consumers could see from Apple in 2022, but the company is also working on a handful of rumored products that aren't expected to be unveiled for at least another 12 months, and in some cases a lot longer. Of course, that's assuming they get released at all. Apple works on many potential products some of which ultimately never see the light of day. With that in...
AirPods Pro Gen 3 Mock Feature Red

AirPods Pro 2 Could Start a New Accessory Ecosystem

Friday January 14, 2022 2:34 am PST by
Apple's second-generation AirPods Pro could arrive alongside a new series of accessories, recent leaked images suggest. Alleged leaked photos of the next-generation AirPods Pro obtained by MacRumors showed a charging case with a metal loop on the side for attaching a strap. Apple has not used this design for any of its other AirPod models and it is unclear why it would be added in this...
netflix2

Netflix Again Raises Prices for All Plans, 4K Streaming Now $20 Per Month

Friday January 14, 2022 12:46 pm PST by
Netflix today updated the prices for its streaming plans, and all of its offerings are now more expensive. The Basic plan is now priced at $9.99 per month, the Standard plan is priced at $15.49 per month, and the Premium plan is priced at $19.99 per month. The Basic plan is $1 more expensive, up from $8.99 per month. This plan allows users to watch on just one screen at a time, and it limits ...
tesla carplay solution

Developer Showcases Apple CarPlay Workaround for Teslas

Monday January 17, 2022 7:24 am PST by
A Tesla Model 3 owner has resorted to a workaround to implement Apple CarPlay in his vehicle, amid no sign of official support from Tesla (via Tesla North). Apple CarPlay and Apple Music support are among the most-requested Tesla features, but with no indication that Tesla is willing to implement Apple CarPlay in its vehicles, Polish developer Michał Gapiński took matters into his own...
top stories 20220115

Top Stories: iPhone 14 Pro Rumors, iCloud Private Relay Controversy, iOS 15.2.1 Released, and More

Saturday January 15, 2022 6:00 am PST by
Hole-punch? Pill? Hole-punch and pill? Rumors about what the front camera system on the iPhone 14 Pro will look like are evolving rapidly, and it now appears we might be getting a novel but potentially controversial design later this year. Other major stories this week included some confusion and controversy about iCloud Private Relay being disabled for some T-Mobile customers, increasing...