Foxconn, a Taiwanese multinational electronics contract manufacturer, has recently stated that the second half of the year is heading in a better direction as the COVID-19 lockdown imposed in Shanghai is being lifted slowly.

During the firm's annual shareholder meeting, Foxconn Chairman Liu Young way said that the firm is quite confident about the stability of its supply chain in the second half of this year.

The government of Shanghai is planning to allow all the residents staying in the low-risk areas to return to work starting this Tuesday.

As per credible sources, Foxconn is planning to become the first EV (electric vehicle) maker that will never face material supplies dearth, said Liu, implying a protracted global chip shortage that has obliged various carmakers to pause the production and decline the smartphone manufacturin, which also includes for Apple Inc., a major client.

Liu added that a car that costs thousands of dollars cannot be shipped owing to a small chip value of fifty cents causing agony amongst the customers.

Foxconn plans to seize around 5% of the global electric vehicle market by the end of 2025. It also hopes to augment its capacity for making the EV chips, many of which are said to be small lower end ICs and those used in power supervision.

In May, the firm warned that the revenue for its electronic business, including smartphones, could slip this quarter owing to growing inflation, intensifying supply chain issues, and cooling demand moderately due to lockdowns in China.

Foxconn stated that while the strict COVID-19 controls in China had only a limited impact on production as it kept workers on-site in a "closed circle" system, the request for its products in the country has agonized as people continue to remain in isolation.

Source Credit - https://www.timesnownews.com/technology-science/foxconn-expects-a-more-stable-supply-chain-in-the-second-half-of-2022-article-91906355