Taiwan's Foxconn reports 35% rise in Q2 profit on AI demand
It stuck to its previous forecast of “strong” growth for revenue this year
Taiwan's Foxconn, the world's largest contract electronics maker, announced on August 12 a 35% increase in second-quarter profit, surpassing analyst predictions, driven by continued strong demand for AI technology. The company's net profit for the April-to-June period was NT$59.97 billion (US$1.86 billion), higher than the LSEG consensus estimate of NT$58.8 billion and compared to NT$44.4 billion a year earlier.
Foxconn maintained its forecast of "strong" revenue growth for the year and attributed the robust performance to the expanding AI market. The electronics giant, formerly known as Hon Hai Precision Industry, reported a 40% year-on-year surge in revenue for the same period. While most iPhones it assembles for Apple are still produced in China, Foxconn now manufactures the majority of those sold in the United States in India.
The firm is also constructing factories in Mexico and Texas to manufacture AI servers for Nvidia. Foxconn's shares have climbed 17% in 2023, lagging the broader Taiwan index's 57% gain. The company's shares rose by 2.7% on Wednesday.
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