ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Technology

Foxconn sees limited impact from huge China floods on iPhone hub

Chairman of key Apple supplier says regional manufacturing is necessary

Foxconn Chairman Young Liu is optimistic over the company's prospects during the second half of this year. (Photo courtesy of Foxconn)

NEW TAIPEI, Taiwan -- Key Apple supplier Foxconn on Friday said it expects limited impact from massive flooding in the Chinese city of Zhengzhou, the world's biggest iPhone production base, alleviating concerns over possible effects on assembly of the latest version of the smartphone, which is set to begin in weeks.

"We now don't see much impact from the floods in Zhengzhou," Foxconn Chairman Young Liu told the company's annual shareholders meeting in New Taipei City, near Taipei. The ongoing, unprecedented chip and component shortage plaguing the industry is also unlikely to cause major problems for Foxconn's business, Young said.

"We are optimistic about the outlook for the second half of this year," he added. In the first half, Foxconn has already notched up record revenue of 2.7 trillion New Taiwan dollars ($964 billion), up 31% from the same period in 2020.

Liu also said Foxconn sees an increasing need to build regional manufacturing centers around the world. The company already has a global production footprint, and will keep building complete regional supply chains to keep up with demand.

"It's an era in which all companies need to build regional centers," Liu said, marking a change from the previous concentration of manufacturing in one place, such as China. "Foxconn is building vertical integration supply chains across all regions, like what we built in China in the past," he said.

Record rainfall in central China, which has been described as a once-in-a-century event, has caused severe floods, with the Henan provincial capital of Zhengzhou the worst-hit.

That has sparked concerns about preparations for production of the latest iPhone. On Wednesday, water breached the perimeter of Foxconn's iPhone manufacturing complex in the city, affecting deliveries of components and disrupting the commutes of some employees, the company said. All facilities, production equipment and employees are safe, it added.

Foxconn has set up an emergency response team to monitor the situation in Zhengzhou and help employees who were unable to return to their dormitories outside the complex. Water has started to recede from the edge of the complex, the company told Nikkei Asia.

Foxconn, the world's biggest contract electronics manufacturer, is the largest iPhone assembler and operates manufacturing bases for Apple's iconic handsets in Zhengzhou, Taiyuan, and Shenzhen in mainland China, as well as in India. Foxconn and other iPhone assemblers are scheduled to begin assembling the newest iPhone model in August in China.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends July 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more