Taiwan’s Foxconn, the world’s largest contract electronics manufacturer, is expected to announce on Thursday an 11% rise in second-quarter earnings, driven by strong demand for artificial intelligence servers.
Analysts estimate the April-to-June net profit at T$38.8 billion ($1.30 billion), up from T$35.05 billion in the same period last year, according to LSEG consensus data. The company, officially known as Hon Hai Precision Industry, previously reported record quarterly revenue on the back of surging AI product sales, though it warned of challenges from geopolitical tensions and currency fluctuations.
Trade uncertainty remains a concern for Foxconn’s full-year outlook, given its substantial production base in China. However, prospects improved slightly after Washington and Beijing extended a tariff truce for another 90 days. While most of Apple’s iPhones assembled by Foxconn come from China, a growing share of U.S.-bound units are now produced in India. The firm is also expanding facilities in Mexico and Texas to manufacture AI servers for Nvidia.
In its July sales update, Foxconn said it expects year-on-year growth in the third quarter, though it stopped short of giving precise figures. It cautioned that “evolving global political and economic conditions” require close monitoring.
The company is pushing into new sectors, including electric vehicles, which it views as a key long-term growth driver. Earlier this month, Foxconn agreed to sell a former Lordstown, Ohio, car plant for $375 million, including equipment, but will continue to use the site for a broader range of strategic products.
Foxconn has also moved to diversify beyond iPhone assembly, partnering last month with TECO Electric & Machinery to develop data centres.
The company will hold its earnings call in Taipei at 3 p.m. (0700 GMT) on Thursday, providing further details on its performance and outlook. Foxconn shares have gained 7.9% so far this year, outpacing the Taiwan stock index’s 5.8% rise.
