iPhone assembler Foxconn warns chip shortages could extend to Q2 2022

Tim Cook at Foxconn
Tim Cook at Foxconn (Image credit: Apple)

What you need to know

  • Foxconn Chairman Young Liu says the current chip shortage could last for a year.
  • It isn't thought that things will improve before the second quarter of 2022.

Apple manufacturing partner Foxconn reported its quarterly numbers recently and while the company boasted bumper profits, it isn't all good news. In fact, the worldwide chip shortage that is currently causing manufacturing problems for just about everyone could extend into Q2 2022.

That's according to Foxconn Chairman Young Liu via a Bloomberg report published earlier today.

"Component shortages in the second quarter will be more severe than the first quarter," Chairman Young Liu said on a conference call. He reiterated previous comments that shortages may persist until the second quarter of 2022 and that the impact on its businesses won't exceed 10%.

Things have gotten so bad that Foxconn is warning that some parts now have a lead time of a full year, with semiconductors and display drivers among those impacted. Both are key components and are obviously vital to producing some of the highest-profile technology products sold today.

Taiwan's Hon Hai (Foxconn) is among a crop of leading companies from Sony Corp. to Stellantis NV that have sounded the alarm over a growing shortage of key components like semiconductors and display drivers vital to product manufacturing. Liu said last month that component scarcity has worsened since late March and the lead time for some parts is now as long as 52 weeks.

Apple recently announced new Apple silicon-powered iMac computers as well as new iPad Pro tablets. Neither were ready to ship on the day of their announcement and delivery estimates for the latter in particular are stretching into months, let alone weeks. With Apple set to announce new iPhones this September, it's possible they too could be impacted by the current chip shortage.

If you don't mind waiting a little while, these are the best iMac deals we've come across so far.

Oliver Haslam

Oliver Haslam has written about Apple and the wider technology business for more than a decade with bylines on How-To Geek, PC Mag, iDownloadBlog, and many more. He has also been published in print for Macworld, including cover stories. At iMore, Oliver is involved in daily news coverage and, not being short of opinions, has been known to 'explain' those thoughts in more detail, too. Having grown up using PCs and spending far too much money on graphics card and flashy RAM, Oliver switched to the Mac with a G5 iMac and hasn't looked back. Since then he's seen the growth of the smartphone world, backed by iPhone, and new product categories come and go. Current expertise includes iOS, macOS, streaming services, and pretty much anything that has a battery or plugs into a wall. Oliver also covers mobile gaming for iMore, with Apple Arcade a particular focus. He's been gaming since the Atari 2600 days and still struggles to comprehend the fact he can play console quality titles on his pocket computer.