Foxconn, the world’s largest contract electronics manufacturer, reported a record Q2 revenue of NT$1.797 trillion (~$57–58 billion), marking a strong 15.82% year-on-year increase—a surge largely driven by explosive AI server and networking hardware demand
🚀 What Fueled the Revenue Growth?
- Booming AI & cloud demand: Foxconn’s cloud and networking division, supplying to the likes of NVIDIA, was the main growth engine this quarter
- Flattish consumer electronics: iPhones and other smart devices saw stagnant growth, affected by currency fluctuations and a stable shipment pace
- June milestone: June’s revenue hit NT$540.237 billion, up 10.09% YoY, the best-ever monthly figure for Foxconn
⚠️ Cautious Outlook Ahead
Despite record numbers, Foxconn issued a warning:
- Geopolitical tensions: Ongoing trade disputes and U.S. tariff uncertainty could impact supply chains
- Exchange rate risk: A stronger Taiwanese dollar could dent revenue by roughly 3% per NT$1 appreciation
The company said it expects Q3 revenue to grow both sequentially and YoY, but will “continue close monitoring” of macro risks
🌐 Broader Context & Strategy
- AI pivot paying off: This quarter confirms Foxconn is transitioning from iPhone assembly to a broader AI and cloud infrastructure powerhouse .
- Diversification boost: In addition to AI, Foxconn is pursuing growth in electric vehicles (EVs), partnering with Nissan and Mitsubishi through Foxtron—adding more upside potential
- Tech Day & capex outlook: A projected upgrade to its NT$7 trillion 2025 revenue target could materialize around upcoming events, with Eye on AI and EV initiatives
