[TAIPEI] Taiwan’s Foxconn, the world’s largest contract electronics maker, reported record second-quarter revenue on strong demand for artificial intelligence products but cautioned about geopolitical and exchange rate headwinds.
Revenue for Apple’s biggest iPhone assembler jumped 15.82 per cent year-on-year to NT$1.797 trillion (S$75.47 billion), Foxconn said in a statement on Saturday (Jul 5), beating the NT$1.7896 trillion LSEG SmartEstimate, which gives greater weight to forecasts from analysts who are more consistently accurate.
Robust AI demand led to strong revenue growth for its cloud and networking products division, said Foxconn, whose customers include AI chip firm Nvidia.
Smart consumer electronics, which includes iPhones, posted “flattish” year-on-year revenue growth affected by exchange rates, it said.
June revenue roses 10.09 per cent on year to NT$540.237 billion, a record high for that month.
Foxconn said it anticipates growth in this quarter from the previous three months and from the same period last year but cautioned about potential risks to growth.
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“The impact of evolving global political and economic conditions and exchange rate changes will need continued close monitoring,” it said without elaborating.
US President Donald Trump said he had signed letters to 12 countries outlining the various tariff levels they would face on goods they export to the US, with the “take it or leave it” offers to be sent out on Monday.
The Chinese city of Zhengzhou is home to the world’s largest iPhone manufacturing facility, operated by Foxconn.
The company, formally called Hon Hai Precision Industry, does not provide numerical forecasts. It will report full second quarter earnings on Aug 14.
Foxconn’s shares jumped 76 per cent last year, far outperforming the 28.5 per cent rise for the Taiwan market, but are down 12.5 per cent so far this year, reflecting broader pressure on tech stocks rattled by Trump’s tumultuous trade policy.
The stock closed down 1.83 per cent on Friday ahead of the revenue data release, compared with a 0.73 per cent drop for the benchmark index. REUTERS
