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Apple supplier Foxconn today said that it expects shipments to be cut by 10 percent due to the global chip shortage, reports Nikkei. In an earnings call, Foxconn chairman Young Liu said that the first two months of the quarter were okay, but the company "started to see changes happening this month."

iphone12-lineup-wide.jpg

Foxconn did not mention Apple specifically, but it is a major Apple supplier and this perhaps suggests that the ongoing chip shortage will ultimately impact Apple. Foxconn is responsible for much of the assembly of Apple's iPhone models, but it does work with other companies like Google and Microsoft.

Apple has more resources than many other smaller companies that have already been hit by chip shortages, but it could run into trouble sourcing supplies for upcoming devices as the chip issues continue. Foxconn expects the shortage to extend into the second quarter of 2022.

Foxconn will ship 10 percent fewer products than planned, but "the impact on the orders that were secured a long time ago is rather limited," so it's not clear if and when Apple might be affected.

The ongoing chip shortage was caused by supply chain issues that arose during the global health crisis and weather-related events like the freeze in Texas that shut down Austin chip plants. As chip factories struggled to keep up with standard outputs during the pandemic, demand surged as people purchased devices for an at-home lifestyle, leading to higher prices. Electronics companies bought up all available supply, and chip makers are running at capacity.

With manufacturing capabilities limited, chip makers have focused on higher-end chips for smartphones and game consoles rather than the more affordable, less-advanced and less profitable chips used for everyday devices such as cars.

Because of this focus on higher-end manufacturing, the car industry has been most heavily impacted so far, and manufacturers like General Motors and Ford have had to slash production, but major tech companies could also be affected going forward.

Article Link: Apple Supplier Foxconn Expects Shipments to Be Impacted by Global Chip Shortage
 

mtneer

macrumors 68040
Sep 15, 2012
3,174
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I thought Apple has had first dibs on TSMC leading node fabs. Can they not just use those fabs to manufacture anything that their supply chain needs to be not impacted? Something does not add up here.
 

1258186

Cancelled
Feb 5, 2021
813
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Inevitable. Everyone is being affected by this and will continue to be until manufacturing capacity it’s dramatically increased.
 
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Sasparilla

macrumors 68000
Jul 6, 2012
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I thought Apple has had first dibs on TSMC leading node fabs. Can they not just use those fabs to manufacture anything that their supply chain needs to be not impacted? Something does not add up here.

Pretty sure they do as they seem to front alot of the funds used to build the factories they use for Apple things, if memory serves. It's not just the TSMC CPU that goes to make an iPhone though....there's still lots of other things and chips in there. Whether that will impact Apple much we'll see. Foxconn makes stuff for alot of folks and may have been talking about other clients.

Is making me question whether to wait on the Apple Watch 7 or go for the 6. Was happily in the wait for the 7 group, but doesn't sound like things are going to get better at this point.
 

az431

Suspended
Sep 13, 2008
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Portland, OR

mtneer

macrumors 68040
Sep 15, 2012
3,174
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Where in the article does it state that Apple is affected?

".....this perhaps suggests that the ongoing chip shortage will ultimately impact Apple. Foxconn is responsible for much of the assembly of Apple's iPhone models,...."
 

howdy-doody

macrumors newbie
Mar 30, 2021
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“With manufacturing capabilities limited, chip makers have focused on higher-end chips for smartphones and game consoles rather than the more affordable, less-advanced and less profitable chips used for everyday devices such as cars”

huh? Cars are easy. Autonomous driving, ADAS and xEV, nothing to it.

yes, Apple has MFN agreements with their suppliers. And even though this includes TSMC, there are many suppliers of chips in those phones other than TSMC. Of course Apple is impacted. My guess is this why there was no March event too. No fun to introduce a hot new product that your customer base can’t get
 

ArPe

macrumors 65816
May 31, 2020
1,281
3,319
Tell those stupid crypto people to stop using millions of chips to the exact same calculations. Wasting all the silicon and consuming 2-3 countries worth of electricity to do the same work that can be done with 99% less amount of processors.

These people are just being greedy parasitic death cult in a pyramid scheme designed to get more dollars from the next sucker who buys in.
 

GeoStructural

macrumors 6502a
Oct 8, 2016
913
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Colombia
I wouldn’t be surprised if Apple has a contractual ‘front-of-the-line’ deal when it comes to issues like this. I doubt they’ll feel the impact of this but they’ll definitely use it to drum up hype for the new iPhones

They probably do, back when Steve was alive and CEO, Tim Cook was tasked on securing Lithium first for Apple.
 
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erthquake

macrumors regular
Oct 11, 2011
175
152
“With manufacturing capabilities limited, chip makers have focused on higher-end chips for smartphones and game consoles rather than the more affordable, less-advanced and less profitable chips used for everyday devices such as cars”

huh? Cars are easy. Autonomous driving, ADAS and xEV, nothing to it.

Those aren't the chips that are limited. It's the older process nodes that are used things like fuel management.
 

jz0309

Contributor
Sep 25, 2018
5,920
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Temecula, CA
The shortage is not with TSMC 5 or 7nm chips but some of the other, more mature process nodes... there are still plenty of those chips in the iPhone, even the 13...
 
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