Foxconn, the world’s largest contract electronics manufacturer, surpassed market expectations with its Q2 revenue as a result of burgeoning AI server demand.
Officially known as Hon Hai Precision Industry Co Ltd, Foxconn reported that its revenue for June reached NT$490.7 billion (approximately $15.12 billion), an increase of 16.1% compared to the same period in 2023. The company’s overall Q2 revenue rose to NT$1.55 trillion, representing year-on-year growth of 19.1%.
While Foxconn’s AI server business delivered substantial growth, the company’s revenue from consumer electronics products, including smartphones, remained flat year-on-year. Foxconn did not provide a detailed explanation for this stagnation, but it reflects the prevailing sluggishness in the global PC and smartphone markets.
Although the company did not provide specific forecasts, Foxconn anticipates continued revenue growth in the third quarter of the year, the traditional peak season for Taiwan’s tech companies as they ramp up production to meet the year-end holiday demand. Suring AI server sales are also expected to make a major contribution to the company’s growth throughout the second half of the 2024.
Long time technology industry fan here in Taiwan.
