Supply chain challenges that have hurt multiple industries for over a year now may have started improving. Apple, Inc.'s iPhone assembler Hon Hai Precision Industry Co., Ltd. (OTC:HNHPF), popularly known as Foxconn, on Wednesday issued positive commentary about the supply chain.
What Happened: Component shortages will see a major improvement in the first quarter, while overall supply constraints will start easing in the second-half, Bloomberg reported, citing a Foxconn spokesperson.
Power management chips remain in short supply, the spokesperson reportedly said. The company expects first-quarter revenue to be flat year-over-year, he added.
Apart from its supplier relationships with several tech companies including Sony Group Corporation (NYSE:SONY) and Nintendo Co., Ltd. (OTC:NTDOY), Foxconn has also ventured into EV manufacturing.
Related Link: Apple Supplier Foxconn Sees 2022 As 'Challenging' While Bringing 'Opportunities Not Seen In Decades'
Why It's Important: Resolution of supply chain issues is key for global companies to step up production in order to meet robust demand. Apple CEO Tim Cook said at the company's December quarter earnings call that supply constraints will have less impact in the March quarter than in the previous quarter.
Automakers, however, have been sounding out production impact from chip shortages. Japanese auto giant Toyota Motor Corporation (NYSE:TM) announced in late January it is suspending production in 12 plants, citing shortage of parts supply caused by the spread of COVID-19 at its supplier in Japan.
Foxconn shares trading over the counter were down 0.13% at $7.59 Thursday afternoon.
Related Link: Apple Supplier Foxconn Taps Autoware's AI Expertise In New Alliance
