Foxconn Says Supply-Constraints Easing, Will Also Invest in Semiconductor Manufacturing
Hon Hai Technology Group, otherwise know as Foxconn, says that electronic component shortages, including semiconductors, are now easing, according to Bloomberg. Foxconn is the parent company of Sharp Corporation and the biggest assembler of iPhones, and is said to be one of the world’s electronics makers.
Additionally, a Foxconn spokesperson stated that the company is seeing a “major improvement” in parts shortages during this first quarter, and that supply constraints should ease in the second half of the year.
Semiconductor Manufacturing Project
On February 14th, Foxconn also announced that it signed a Memorandum of Understanding Agreement (MUA) with Vedanta, one of India’s largest multinational groups, to form a joint venture company that will manufacture semiconductors in India.
Foxconn’s says this first-of-its-kind joint venture between the two companies will support Indian Prime Minister Narendra Modi’s vision to create an ecosystem for semiconductor manufacturing in India.
According to the MOU, Vedanta will hold the majority of the equity in the joint venture, while Foxconn will be the minority shareholder. Vedanta Chairman Anil Agarwal will be the chairman of the joint venture company.
The project plans to invest in manufacturing semiconductors, and Foxconn says it will provide a significant boost to domestic manufacturing of electronics in India. The companies are currently in discussions with several Indian state governments to finalize the location of the plant.
The semiconductor shortages has affected everything from auto production to toner cartridges – with Canon Inc. for instance, temporarily manufacturing chipless toner cartridges. While many analysts expect the shortage to resolve in the second half of this year, a recent Fortune article warned that a Russian invasion of Ukraine might set semiconductor shortage back a year. That’s because Russia and Ukraine are exporters of key materials for making computer chips, including the rare-earth metal scandium, as well as neon and palladium. On February 11th, Reuters reported that the U.S. White House warned semiconductor manufacturers of possible supply constraints in the event of a Russian invasion.