Taiwanese company Foxconn, the world\u2019s largest contract electronics manufacturer, lowered its annual forecast on Wednesday, citing the recent strengthening of the Taiwan dollar, despite optimistic statements about growing demand for AI servers.<\/p>\n\n\n\n
Foxconn, the main iPhone assembler for Apple and AI server manufacturer for Nvidia, enjoys high demand in the AI sector but remains vulnerable to shifts in U.S. trade and tariff policies due to its production facilities in China and Mexico.<\/p>\n\n\n\n
Chairman Young Liu told investors in a conference call that U.S. tariffs are creating new challenges and that the company\u2019s annual outlook is now more cautious. He cited the stronger Taiwan dollar against the U.S. dollar as a key reason, which may affect revenue when converted.<\/p>\n\n\n\n
\u201cCompared to March, our outlook for this year is slightly more conservative. We’ve adjusted it, although we still expect growth,\u201d Liu said.<\/p>\n\n\n\n
He added that recent U.S. tariff changes have impacted global supply chains, and currency fluctuations increase uncertainty, prompting a cautious approach.<\/p>\n\n\n\n
Although the U.S. and China have agreed to a 90-day tariff reduction, this does not guarantee long-term stability, and high tariffs could still negatively affect the global economy.<\/p>\n\n\n\n
Most iPhones Foxconn makes for Apple are assembled in China. The company is also building a large factory in Mexico to manufacture servers for Nvidia.<\/p>\n\n\n\n
In April, Nvidia announced it would produce $500 billion worth of AI servers in the U.S. over four years, in partnership with companies like TSMC and Foxconn in Houston.<\/p>\n\n\n\n
In its earnings report, Foxconn said it expects significant growth in Q2 \u2014 with high double-digit year-on-year growth in AI servers and overall production growth.<\/p>\n\n\n\n
Net profit for the first quarter rose 91% year-on-year to NT$42.12 billion ($1.39 billion), beating the average analyst forecast of NT$37.8 billion.<\/p>\n\n\n\n
Foxconn (formerly Hon Hai Precision Industry) also reported that first-quarter revenue rose by 24.2% thanks to strong AI server sales.<\/p>\n\n\n\n
The company aims to expand its presence in the electric vehicle market, which it views as a key growth area. Its subsidiary, Foxtron Vehicle Technologies, and Japanese automaker Mitsubishi Motors signed an electric vehicle supply memorandum last week.<\/p>\n\n\n\n
Foxconn is also considering acquiring a stake in Nissan to facilitate cooperation. Nissan is seeking greater business flexibility after weak sales in China and the U.S.<\/p>\n\n\n\n
Liu noted that negotiations with Japanese automakers are ongoing and progressing, but no concrete updates are available yet.<\/p>\n\n\n\n
Foxconn\u2019s shares have fallen 11.4% since the start of the year amid concerns over U.S. trade policy, while Taiwan\u2019s broader index has dropped 5.4%.<\/p>\n","protected":false},"featured_media":3869,"template":"","class_list":["post-3871","news","type-news","status-publish","has-post-thumbnail","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/stocksoft.com.pl\/en\/wp-json\/wp\/v2\/news\/3871","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stocksoft.com.pl\/en\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/stocksoft.com.pl\/en\/wp-json\/wp\/v2\/types\/news"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stocksoft.com.pl\/en\/wp-json\/wp\/v2\/media\/3869"}],"wp:attachment":[{"href":"https:\/\/stocksoft.com.pl\/en\/wp-json\/wp\/v2\/media?parent=3871"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}