The global chip crisis caused by the impact of the coronavirus epidemic is a nightmare especially for the smartphone market. Last year, Apple temporarily reduced iPad production due to the crisis. In fact, in the shared reports, it was stated that the company could not even keep up with the iPhone 13 demands.
Taiwan-based Foxconn, which is one of Apple’s important partners and produces iPhones, made a statement to relieve the industry about the chip shortage.
The chip crisis has begun to subside
Foxconn has announced that the chip crisis, which disrupts the supply chain of every device from smartphone to computer, has begun to subside. Company spokesman James Wu broke the good news at an event in Taiwan’s capital, Taipei.
James Wu noted that in the first quarter of 2022, they saw a major improvement in component shortages. Noting that this will not be limited to the first quarter, Foxconn spokesperson stated that they expect the general supply restriction to ease by the second half of the year. In addition, Wu stated that they hope the company’s first quarter revenue will change little compared to the previous year.
Currently, Apple designs its own A-series and M-series chips and manufactures them by Taiwan-based TSMC. However, it supplies basic hardware such as display drivers and power management component from Foxconn. According to a Foxconn spokesperson, the crisis that has plagued the technology industry for two years will gradually subside this year.
Due to the chip crisis, Apple suffered a loss of $ 6 billion in the fourth quarter of 2021. In addition, the company had to reduce iPad production a little in order to meet iPhone demand. “We have been impacted by supply restrictions on many of our products,” said Tim Cook, Apple’s CEO. “We anticipate fewer restrictions in March than in the December quarter.”
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