Taiwan's Foxconn reports 35% rise in Q2 profit on AI demand

[TAIPEI] Taiwan’s Foxconn, the world’s largest contract electronics maker, reported on Wednesday (Aug 12) a 35 per cent rise in second-quarter profit, beating analyst forecasts, on continued strong demand for AI, which it predicted would drive growth this year.

Net profit for the April to June period for Nvidia’s biggest server maker and Apple’s top iPhone assembler was NT$59.97 billion (US$1.86 billion), versus an LSEG consensus estimate of NT$58.8 billion and compared with NT$44.4 billion a year earlier.

In an earnings release, it stuck to its previous forecast of “strong” growth for revenue this year and said it also saw strong AI demand driving growth throughout the year. The company does not give numeric forecasts.

Foxconn, formally called Hon Hai Precision Industry, in July reported a 40 per cent year-on-year jump in second-quarter revenue.

Most of the iPhones Foxconn makes for Apple are assembled in China, but it now produces the bulk of those sold in the United States in India. The company is also building factories in Mexico and Texas to make AI servers for Nvidia.

Foxconn has also been looking to expand its footprint in electric vehicles.

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The company’s shares have risen 17 per cent so far this year, underperforming the broader Taiwan index’s 57 per cent gain.

Foxconn shares closed 2.7 per cent higher on Wednesday. REUTERS