Foxconn: Global chip crisis could last until summer-end 2022

The global chip shortage crisis has crippled the auto-making industry worldwide and has severely affected every tech industry that relies on chips. And we are getting reports that more industries are getting affected by the global chip crisis and the fact that the shortage is expected to run rampant for at least another year.

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In recent news, Foxconn executive Young Liu indicated to investors that the chip shortage had finally affected the company last month. It has become yet another company amongst many to suffer from this latest crisis.

According to sources, the crisis has resulted in Foxconn missing components, which has forced the manufacturer to cut its deliveries by 10% on what they had hoped they would be. Liu even expects the chip shortage to last until the end of Q2 2022. And as such is the case, then it’s going to take quite a while before we get to see any graphics cards and gaming consoles selling at MSRP through retail channels.

Foxconn’s executive even adds that the chip shortage has particularly affected ‘home economy products’ of late. An increase in demand is also a big factor in the crisis, as much is the COVID-19, but the shortage has had only a limited impact on orders locked in a long time ago.

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In other news, Foxconn reported that it wants to increase its gross margin from 5.65% to 10% by building more electric cars. The company plans to unveil electric bus and e-car prototypes this year before delivering the former in 2022. It hopes to start producing up to 10,000 electric cars in Mexico or Wisconsin soon.

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