Benzinga | Nov 12, 2021 03:08PM EST

Foxconn Sees Supply Chain Crisis Lasting Till 2022, Bets On EV Partner Lordstown Motors

* Apple Inc (NASDAQ:AAPL) supplier Foxconn Technology Co Ltd (OTC:FXCOF) expects global supply-chain crunch to last until the second half of 2022, the Wall Street Journal reports.

* Foxconn also expects its December quarter's consumer electronics revenue to decline by 3% - 15% year-on-year versus the consensus of 11% drop, Reuters reports.

* Apple admitted that the supply-chain constraints in the components manufacturing hub of Southeast Asia had hurt potential revenue by $6 billion in July-September and hindered iPhone production. Apple saw the crisis deteriorate in the October-December quarter during its important holiday demand season.

* Foxconn expects shipments of components, including optical modules, to go back to normal by the end of the year as the pandemic situation improves. Power management chips would likely remain tight.

* Foxconn's profit for the September quarter rose 20% Y/Y to T$36.98 billion or $1.33 billion, beating the consensus of T$31.73 billion. Foxconn's revenue increased by 8.8% Y/Y.

* Foxconn expects its electronic vehicle (EV) business to contribute to revenue in Q3 of 2022, when it could start production in America in a partnership with Lordstown Motors Corp (NASDAQ:RIDE).

* Foxconn aims to build more EV partnerships with companies in places including the Middle East, India, and Europe to "serve the local markets."