According to the chairman of Foxconn, the shortage of chips expects “limited effects” on customers

© Reuters. The Foxconn logo can be seen on a glass door in his Taipei office building

TAIPEI (Reuters) – Chairman of Apple Inc (NASDAQ 🙂 supplier Foxconn said Saturday he expects his company and customers will have “limited impact” from a chip shortage that has rocked the global automotive and semiconductor industries .

“Since most of the customers we serve are large customers, they all have adequate retirement planning,” said Liu Young-way, chairman of the manufacturing conglomerate formerly known as Hon Hai Precision Industry Co Ltd

“So the impact on these large customers is there but limited,” he told reporters.

The global spread of COVID-19 has increased the demand for laptops, game consoles, and other electronics. This led chipmakers to move their capacities outside of the auto sector, which was anticipating a sharp downturn.

Now automakers like Volkswagen AG (OTC :), General Motors Co (NYSE :), and Ford Motor (NYSE 🙂 Co have reduced production as chip capacity has shrunk.

According to Counterpoint Research, the shortage has spread to the smartphone sector and application processors, display driver chips and power management chips are facing a crisis.

However, the research firm predicts that Apple will have minimal impact due to its size and the tendency of its suppliers to prioritize. Apple is Foxconn’s largest customer.

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