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iPhone assembler Foxconn expects ‘unprecedented’ first quarter as manufacturers build up inventory
- The manufacturer’s chairman said performance may surpass past years and some staff may only get two days off for the week-long Lunar New Year holiday
- Manufacturers are building up inventory out of fear that the Omicron Coronavirus variant could disrupt their supply chain
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Major iPhone assembler Foxconn Technology Group may achieve an “unprecedented” performance in the first quarter, according to chairman Young Liu.
“Our performance in the first quarter may surpass how we did in the past few years, and it is likely that some staff at key sites will only get two days off during the Lunar New Year holidays,” said Liu in prepared remarks for the Taiwanese company’s annual party on Sunday.
Manufacturers around the world are racing to build up inventory out of the fear that outbreaks of the omicron variant and other uncertainties could further disrupt their supply chain. Earlier this month, Taiwan Semiconductor Manufacturing Co chief executive C C Wei told analysts he expects companies to maintain a higher level of inventory compared to the past to ensure supply security.
Foxconn, the world's largest electronics contract manufacturer formally known as Hon Hai Precision Industry, runs many of its factories in mainland China, which will shut most offices and businesses for seven days starting January 31 for the Lunar New Year holiday.
In addition to being a key manufacturing partner to Apple, the Taiwanese company also makes various devices for other global brands, including Dell Technologies, Sony Group Corp and Nintendo.
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