November 13, 2026 / SemiMedia / — Foxconn warned on November 12 that shortages of chips, memory and other key components are affecting both AI and consumer electronics supply chains, with overall demand expected to remain above supply in 2027.

Chairman Young Liu described component availability as an industry-wide challenge. Although new production capacity should gradually ease bottlenecks, he said the imbalance between supply and demand could persist for some time.

Demand for AI infrastructure remains strong. Foxconn expects AI rack shipments to grow at a high double-digit rate in 2027, extending the expansion in its server business. The company maintained its forecast for strong revenue growth this year, even as it flagged component supply as a factor requiring close attention in the year ahead.

The effects are already visible in its computing business. Foxconn expects the segment to decline slightly quarter-on-quarter in the fourth quarter because of tight memory supply. Higher prices for certain components have also increased average selling prices, helping support significant year-on-year revenue growth. Liu took a cautious view of the PC market.