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The global shortage of electronic components is a result of global Pandemic that lasts for over a year now. With closure of borders, more strict controls and hundreds of thousands of people losing their jobs it is hard to maintain pre-pandemic numbers up and running.
What is more, recent Suez Canal blockage caused by big container carrier Evergreen’s Ever Given is not going to make it any easier on electronics shortages. The full blockade lasted six days, from 23rd to 29th of March 2021 and created massive “traffic jam” on both entries to canal.
“The [supply in the] first two months of this quarter was still ok, as our clients are all very big, but we started to see changes happening this month,” Liu reportedly told investors during the company’s latest earnings call.
The biggest client of Foxconn is a well known american behemoth Apple. This is going to complicate things taking into consideration that the newest Iphone 12 Pro Max is the best selling 5G device on American soil. Apple would most considerably, like to keep that trend and plans to sell even more devices from new series, most probably, labeled “13”.
Not only foxconn is having shortages, earlier same month Samsung warned about serious imbalance in semiconductor industry as a result of preparing for worldwide chip shortage.
From automotive industry, Toyota, Ford, Volkswagen and Nissan had to slow down their production lines due to shortage of sillicon, an important part of every car nowadays.
What is more, it is almost April and it is still near to impossible to buy newest PS5 or Xbox Series X consoles that had premiere last year! It is mainly because of many reselling groups as well as part shortages from Sony’s and Microsoft’s assemblies.
It is the same stroy with PC graphic cards and infamous RTX3000x line which is not available for months now. Rest of graphic cards prices skyrocketed because of shortages and growing number of crypto mines which requires huge GPU power.