Foxconn Expects Electronics Supply to Improve in the Second Half of 2022

Taiwanese electronics contract manufacturer Foxconn shared on Tuesday that the supply situation in China is gradually starting to normalize. 

In a meeting with shareholders, Young Liu, the CEO and Chairman of Foxconn, said that the company is "confident in the stability of [its] supply chain for the second half of this year." He believes that the company is now heading "in a better direction" as COVID-19 lockdown is gradually easing.

Earlier, Foxconn had to suspend its production amid a major outbreak of COVID-19 in the country. At the time, Foxconn warned that its revenue in the electronics segment including smartphones might have not grown amid rising inflation, lower demand for devices, and supply problems, which arose, among other things, due to a new wave of the quarantine in China.

However, now the government has allowed residents in "low-risk" areas to return to work from May 31.

"We previously forecast this year we would maintain a similar level from last year, after factoring in inflation ... and other uncertainties, but now we think the full year will be better than our estimate," Young said.

Foxconn reported revenue of 486.46 billion New Taiwan dollars ($16.76 billion) in April, which reflects a slight decline of 4.1% from the previous month. In comparison, the revenues of another iPhone assembler Pegatron and MacBook maker Quanta Computer saw a drop of 35% and 40%, respectively, which was caused by the Shanghai lockdowns.

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