What They Say
Foxconn had a good 2021, with revenues up 12% year on year to $210 billion with profits of $4.9 billion. Smart consumer products logged the highest revenue contribution ratio at 54%, followed by 21% for cloud network devices, 19% for computer products, and 6% for components and other solutions.
It is also having a good Q1 as it makes products deferred from Q4.
The firm said that the war by Russia on Ukraine is not impacting supply chains for Foxconn. The firm is continuing to target the electric vehicle market and wants to make 500,000 to 750,000 per year by 2025.
In the semiconductor sector, Foxconn will deepen its cooperation with partners to develop multiple chips including MCUs, ZCUs, SoCs and other small ICs required for EV EEA (electrical/electronic architecture) applications, the firm indicated.
Foxconn will also plan to build 12-inch wafer fab capacity in addition to existing 8-inch and 6-inch fabs, aiming to establish a complete semiconductor ecosystem vertically integrating EV and other applications.
What We Think
Foxconn is a good bellwether for the industry. I had forgotten, until I saw this data, how big the firm’s turnover is! The firm was, globally, ranked 22nd in the world by revenue in 2020, but its 2021 result was bigger than Samsung in 2020, which was in 16th place.
We reported the other day on disruptions caused by Covid shutdowns in China Foxconn Hit by Covid Restrictions in China and these could hit results. (BR)
