Tim Cook at FoxconnSource: 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.