Foxconn reports sharp rise in first-quarter net profit, rewrites content to maximize SEO friendliness
Taiwanese tech giant Foxconn reported a 72% jump in net profit during the first three months of 2024 as demand for artificial intelligence technology grows. The firm, also known as Hon Hai Precision Industry, is the world’s largest contract electronics manufacturer and assembles devices for several companies, most notably Apple’s iPhones.
The company’s net profit for January-March rose to US$679 million from US$396 million in the same period last year. While this boost marks the third consecutive quarter of profit growth, it still fell short of expectations. Foxconn spokesperson James Wu remained optimistic during Tuesday’s earnings call, emphasizing the company’s strong position in the AI market.
‘We expect that the strong demand for AI servers will bring a new huge market, which is why we are optimistic about this industry,’ he said. ‘Hon Hai is almost the only manufacturer that can develop every key component by itself, from modules, basic servers, high-speed network switches, to data centres.’
Foxconn’s leadership also reaffirmed its commitment to Japanese electronics maker Sharp, in which the Taiwanese firm holds the largest stake of more than 30%. Sharp’s financial losses in 2023 were cited as a factor in Foxconn’s lower base during that year.
‘(Sharp) listed asset impairment… which affected Foxconn’s non-operational and net profit performances in the first quarter,’ said Wu. However, he expressed confidence in Sharp’s future prospects, stating, ‘The worst is behind Sharp. Its future only gets better from here.’
Foxconn announced plans to transform Sharp’s Sakai factory into an ‘AI data centre,’ although further details were not disclosed. Wu emphasized the company’s intention to collaborate with Sharp in developing smart products for various sectors, including personal, automotive, home, and office use.
Foxconn has previously attributed its steady performance growth to strong demand for generative AI, a technology that has experienced a surge in demand in recent years. The firm aims to move beyond electronics assembly by investing significantly in the AI technology market and becoming a comprehensive AI solutions provider.
In October 2023, Foxconn announced a partnership with US chip giant Nvidia to create ‘AI factories’ – powerful data-processing centers that would drive the manufacturing of next-generation products.
Foxconn’s operations are primarily based in China, where it is the country’s largest private-sector employer with over a million workers. However, the company seeks to diversify its manufacturing supply chain after facing disruptions due to strict Covid policies, industrial unrest, and diplomatic tensions with the United States.
In November 2023, Foxconn announced plans to invest an additional US$1.54 billion in India for operational needs, following the purchase of a large tract of land near the tech hub of Bengaluru the previous year.
