Foxconn has 'immense confidence' in growth momentum due to AI, chairman says

NEW TAIPEI: Taiwan's Foxconn , the world's largest contract electronics maker, has "immense confidence" in its growth momentum because of soaring AI demand, Chairman Young Liu said on Friday.

The company, Nvidia's biggest ‌server ⁠maker and Apple's ⁠top iPhone assembler, this month reported a 19% rise in first-quarter profit versus the same period a year earlier, beating expectations due to strong global demand for AI products.

Liu, speaking at an annual shareholders meeting in ⁠Taipei's neighbouring city ‌of New Taipei, said AI remains highly sought after, with capital spending ⁠by the major cloud service providers already exceeding $700 billion this year.


"Their capital expenditure is our market. It has already reached $700 billion, and their capital expenditure next year is expected to potentially reach $1 trillion. This gives us immense confidence in our future ‌growth momentum," he said.

The company, formally called Hon Hai Precision Industry, said this month it expects ⁠its capital expenditures to grow by 30% this year from last year's T$174 billion ($5.55 billion) as it expands manufacturing capacity for AI servers.

The company's shares have risen 19% so far this year, underperforming the broader Taiwan index's 54% gain.