TAIPEI: Taiwan's Foxconn<\/a>, 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.
\"We are quite confident in the stability of our supply chain<\/a> for the second half of this year,\" Foxconn chairman Liu<\/a> 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. [nB9N2XA00P}
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<\/a> 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<\/a>, many of which are small lower-end integrated circuits including those used in power management.
The company warned this month that revenue for its electronics business including smartphones could slip this quarter due to rising inflation<\/a>, cooling demand and escalating supply chain issues partly due to lockdowns in China.
Foxconn reiterated while that China's strict COVID-19 controls in China had only a limited impact on production as it kept workers on-site in a \"closed loop\" system, demand for its products in the country has suffered as people remain shut in.
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