Staff Reporter

Foxconn (HNHAF), the largest contract electronics manufacturer in the world, reported a remarkable 91% increase in quarterly profits on Wednesday, fueled by robust demand for AI servers.

The company’s net profit for the January-March period reached T$42.12 billion ($1.39 billion), surpassing analyst expectations, which averaged T$37.8 billion.

Officially known as Hon Hai Precision Industry, Foxconn also noted a record 24.2% jump in revenue for the same quarter, largely driven by strong AI server sales.

Chairman Young Liu expressed concern during an earnings call regarding the impact of U.S. tariffs, adopting a more cautious outlook for the year ahead.

The ongoing trade tensions between the U.S. and China pose a potential threat to Foxconn’s future prospects, especially given its significant manufacturing operations in China.

However, a recent agreement between Washington and Beijing to reduce tariffs for at least 90 days provided some temporary relief.

Despite the optimism surrounding this short-term truce, there remains caution as a more permanent trade solution is necessary, and elevated tariffs could still hinder the global economy.

Most of the iPhones assembled by Foxconn for Apple are produced in China, but the company is also developing a large manufacturing facility in Mexico aimed at producing AI servers for Nvidia.

In its earnings report, Foxconn projected substantial year-on-year growth in the second quarter, particularly in AI servers, indicating a strong production ramp-up.

Foxconn is also expanding into the electric vehicle sector, viewing it as a vital area for future growth. Last week, its subsidiary Foxtron Vehicle Technologies partnered with Mitsubishi Motors to supply an electric vehicle model.

The company has also expressed interest in potentially acquiring a stake in Nissan to enhance collaboration.