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Foxconn’s pandemic-hit production line | Financial Times

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China’s zero-cube policy is undermining its position as the center of the world’s supply chain, according to analysts, as the locks continue to disrupt the production of technology companies.

“Because the restrictions affect suppliers and logistical activity, companies are moving beyond halting the current crisis and toward diversifying production sites,” said Olaf Stettman, a supply chain expert at Bain Consulting. Told our reporters.

Apple’s supplier, Foxconn, said on Wednesday that its revenues could shrink by 3% this year, and it may struggle to raise its operating profit margin as component costs rise and the epidemic continues.

“2022 is a very challenging year,” Foxconn chairman Liu Yangwei told investors in a profit-making conversation, adding that the continued spread of the corona virus is forcing “very great uncertainty.”

Lex comments Foxconn has other problems: it remains too dependent on its electronics business and is forced to make heavy investments to expand into other areas such as electric vehicles and low chip production.

However, the way she manages her workforce helps her deal with Covid better than other companies. She said today that she had restarted some operations at her Shenzhen plants under a “closed-loop” management that “can only be done on campuses that include both employee housing and manufacturing facilities.”

Stettman said Foxconn’s ability to compartmentalize cases and “teams A and B in place” gives it a big advantage over smaller technology companies in China, which will be slower to restart production.

The Internet of (Five) Things

1. Avst! CMA on a cyber deal
The UK competition regulator has sought to address its concerns over an $ 8 billion merger between US-based NortonLifeLock and London-listed Avast cyber security companies. Can reduce competition And raise prices for customers. Says Lex The news casts doubt on the deal that was determined to have been executed.

2. Big spend Intel
Can Intel waste its way back to chip manufacturing relevance? Lex asks, As the semiconductor maker unveils plans to invest € 33 billion in chip manufacturing and research across Europe. It is also seeking to spend more than $ 40 billion to build and expand U.S. chip manufacturing facilities. # TechAsia newsletter Examine how much China with large expenditures is making major steps towards Self-standing of semiconductors.

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3. Operation of Russian crypto wallets, Binance Bay move
Russian people and companies affected by sanctions have links “Several Hundreds of Thousands” of Cryptographic Coin PursesAccording to the digital property data company Elliptic, which said it is collaborating with government agencies seeking to paste such assets. Elsewhere, the Binance crypto exchange is taking root in the Gulf Seeks to reassure global regulators By establishing a permanent home base and regulatory ties to its international business.

4. Volkswagen’s China problem
Volkswagen relies on China for at least half of its annual net profits, but, worryingly, its electric flagships have sold less well there than it had hoped, as it faces stiff competition from cheap vehicles produced by local competitors, Big Read reports today.

5. Video: Will older investors ever adopt crypto?
The wealthy millennials prefer cryptocurrencies, while only a few of their older counterparts hold cryptocurrencies. This is starting to change as established institutions offer more access to digital currencies. But they have Overcome fears On security and money laundering.

Technical tools – Xiaomi 12 Pro

Chinese smartphone maker Shiomi on Tuesday launched three versions of its 12 new handsets in global markets, led by The pro.

It features a triangular camera array, with a 50MP main wide-angle camera, with 8K recording capabilities. It also has 115-degree ultra-wide and 2x telephoto, plus a 32MP selfie camera. The screen is a 6.73-inch OLED panel and a 4,600mAh battery that can be fully charged in just 18 minutes. The Pro has 256GB of storage and starts at $ 999, with the UK launch scheduled for April.

It competes with that of Samsung Galaxy S22 + The flagship phone and a lower price than it.

James Manning Smith, senior analyst at research firm CCS Insight, commented: “Xiaomi 12’s new phones tick all the boxes for consumers looking for a top-notch smartphone. They offer an attractive design, a market-leading chipset, a competitive camera, a decent battery life and charging. “However, these features are fast becoming data in the smartphone market, and in the end, Xiaomi’s main difference remains the price.”

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Foxconn’s pandemic-hit production line | Financial Times Source link Foxconn’s pandemic-hit production line | Financial Times

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