- Apple Inc (NASDAQ: APPL) supplier Foxconn Technology Co Ltd (OTC: FXCOF) expects “limited impact” from the chip shortage that has flustered the global automotive and semiconductor industries, Reuters reports.
- “Since most of the customers we serve are large customers, they all have proper precautionary planning,” said Liu Young-way, Foxconn chairman.
- The company expects a recovery by the first half of 2021 from continued demand following ease down in the pandemic.
- Higher demand for indoor activities amidst the pandemic led to a demand spike for laptops, gaming consoles, and other consumer electronics. As a result, the focus of the chip manufacturers shifted from the automotive sector.
- The shortage compelled the automakers like Volkswagen AG (OTC: VLKAF) (OTC: VLKPF), Ford Motor Co (NYSE: F), and General Motors Co (NYSE: GM) to opt for production holidays as smartphone and other consumer electronic makers lured away the chip suppliers due to demand for high-end chips.
- U.S. chip companies, including Intel Corp (NASDAQ: INTC), Qualcomm Inc (NASDAQ: QCOM), Micron Technology Inc (NASDAQ: MU), and Advanced Micro Devices Inc (NASDAQ: AMD), sought President Biden’s assistance to tide through the crisis.
- U.S. Senator Charles E. Schumer has assured federal incentives for Samsung Electronics Co Ltd’s (OTC: SSNLF) factory in New York to drive their local chip production. Apple’s major chip supplier Taiwan Semiconductor Manufacturing Co Ltd (NYSE: TSM), recently disclosed plans for a $12 billion chip plant in Arizona to come online by 2024.
- Price: action: HNHPF shares closed 1.23% lower at $8.02 on Friday.
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