Apple Supplier Foxconn Expects 'Limited Impact' From Chip Crisis: Reuters
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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. See more from BenzingaClick here for options trades from BenzingaIndia Entices Apple With Incentives For iPad Assembly Plant: Reuters© 2021 Benzinga does not provide investment advice. All rights reserved.

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