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"We
are quite confident in the stability of our supply chain for the
second half of this year," Foxconn chairman Liu Young-way told
the company's annual shareholder meeting.
The Shanghai government will allow all residents in 'low-risk'
areas to return to work from Tuesday. [nB9N2XA00P}
Foxconn is aiming to become the first electric vehicle (EV)
maker "not short on material supplies", Liu said, referring to a
prolonged global chip shortage that has forced carmakers to halt
production and hurt smartphone production including for Apple
Inc, a major client.
"A car that costs tens of thousands of dollars cannot be shipped
because of a tiny chip worth fifty cents. This has been a pain
for our customers," he said.
Foxconn is aiming to capture around 5% of the global electric
vehicle market by the end of 2025 and has said it is hoping to
boost its capacity to make EV chips, many of which are small
lower-end integrated circuits including those used in power
management.
The company warned this month that revenue for its electronics
business including smartphones could slip this quarter due to
rising inflation, cooling demand and escalating supply chain
issues partly due to lockdowns in China.
Foxconn reiterated that while China's strict COVID-19 controls
in China had only a limited impact on production as it kept
workers on-site in a "closed loop" system, demand for its
products in the country has suffered as people remain shut in.
Foxconn's shares closed up 2.3%, outperforming a 1.2% rise in
the broader market. They have gained 8.7% so far this year,
giving the company a market value of $52.3 billion.
(Reporting by Yimou Lee, Sarah Wu, and Ben Blanchard; Editing by
Kim Coghill and Edwina Gibbs)
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