Foxconn predicts more stable supply chain in the second half of 2022

The Shanghai government will allow all residents in 'low-risk' areas to return to work from Tuesday.

Taiwan's Foxconn, the world's largest contract electronics maker, said on Tuesday that the second half of the year is heading "in a better direction" as Shanghai's COVID-19 lockdown appears to be easing.

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"We are quite confident in the stability of our supply chain for the second half of this year," Foxconn chairman Liu Young-way told the company's annual shareholder meeting.

The Shanghai government will allow all residents in 'low-risk' areas to return to work from Tuesday.

Foxconn is aiming to become the first electric vehicle (EV) maker "not short on material supplies", Liu said, referring to a prolonged global chip shortage that has forced carmakers to halt production and hurt smartphone production including for Apple Inc, a major client.

"A car that costs tens of thousands of dollars cannot be shipped because of a tiny chip worth fifty cents. This has been a pain for our customers," he said.

Foxconn is aiming to capture around 5% of the global electric vehicle market by the end of 2025 and has said it is hoping to boost its capacity to make EV chips, many of which are small lower-end integrated circuits including those used in power management.