TAIPEI, (Reuters) – Foxconn, a supplier to Apple Inc (NASDAQ) reported a 5% jump in net profits for the first quarter. The increase was largely due to supply chain problems and chip shortages. Also, slower spending in electronics during COVID-19 lockdowns were limiting demand.

Taiwanese electronics company is the largest in the world. Its net profit rose from T$28.2billion a year before to T$29.45Billion for January-March.

According to Refinitiv. Twelve analysts had expected an average of T$29.76 Billion in profit.

As with other global companies, the company was also faced with an acute shortage of chips. This has led to a reduction in smartphone production.

Foxconn shares were 1% less than before the earnings announcement, while the market was down 2.4%. Their market value has fallen to $48.1 million, or 2%.