Prime Highlights
- Foxconn’s first-quarter profit rose 19% and exceeded market estimates.
- Strong global demand for AI servers helped support earnings growth.
Key Facts
- Foxconn is the world’s largest contract electronics maker.
- The company is a key manufacturing partner for Apple and Nvidia.
Background
Foxconn reported a 19% rise in first-quarter profit, beating market expectations as strong global demand for artificial intelligence products supported earnings growth.
Net profit for the January to March quarter reached T$49.92 billion, compared with analyst estimates of T$48.88 billion. The company said demand for AI servers remained strong and maintained its earlier outlook for strong revenue growth this year. Foxconn does not provide numerical guidance.
The company, formally known as Hon Hai Precision Industry, had already reported a 30% year-on-year rise in first-quarter revenue in April, showing continued momentum across its core manufacturing business.
Foxconn is a major supplier to Apple and the largest server maker for Nvidia. Most iPhones made by Foxconn are assembled in China, though the company now produces most iPhones sold in the United States from its India operations.
The company is also expanding manufacturing capacity in Mexico and Texas to produce AI servers for Nvidia, reflecting rising demand from data centre and cloud computing customers.
Beyond electronics, Foxconn continues to build its presence in the electric vehicle sector, which it sees as an important long-term growth business. However, progress has faced challenges. In August, the company agreed to sell its former vehicle plant in Lordstown, Ohio, for $375 million, including machinery. Foxconn acquired the facility in 2022 to manufacture EVs.
Foxconn shares have risen 6% so far this year, below the broader Taiwan market’s 44% gain. The stock closed 2.6% lower before the earnings release.
