OPEN APP
Home >News >India >Electronics component shortages will continue till mid-2022: Foxconn

NEW DELHI: The world’s largest manufacturer of electronics, Foxconn, is also suffering the consequences of the global shortage of components. As reported by Nikkei, Foxconn’s chairman Young Liu, in an investor call last week, said the company is “likely to ship" 10% fewer products right now. Liu didn’t specify a timeline, but said the crunch will likely extend till the second quarter of next year.

This could make things difficult for some of the largest electronics companies in the world, including Apple. Component shortages in the electronics market have already affected players globally. Liu said supply for the first two months of the last quarter was “ok" but changes started happening this month. The company is one of the key manufacturers of iPhones worldwide, and has been making certain models of the iPhone in India too.

As reported earlier by Mint, the worldwide component shortages have also made it difficult for companies to meet output targets set by the Indian government under its new production-linked incentive (PLI) scheme. The scheme offers cash incentives worth 4-6% for incremental production over the base year of 2019-20.

Electronics companies wrote to the Indian government last month, asking for it to reconsider the base year for the scheme. They urged the government to set 2020 as the base year, and pay PLI benefits to the approved companies from next year till 2025-26. A letter from the India Cellular and Electronics Association (ICEA) to the Ministry of Electronics and Information Technology (MeitY), said that 15 of 16 PLI applicants will not be able to meet the targets this year.

While the letter did not specifically mention Foxconn, the company is part of the ICEA’s member list. Along with Foxconn/Hon Hai, the government has also approved of Rising Star, a subsidiary of Foxconn.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!

Close
×
Edit Profile
My ReadsRedeem a Gift CardLogout