Taiwan’s Foxconn, the world’s largest contract electronics maker, has “immense confidence” in its growth momentum because of soaring AI demand, Chairman Young Liu said on Friday.
The company, Nvidia’s biggest server maker and Apple’s top iPhone assembler, reported a 19 percent rise in first-quarter profit this month, beating expectations due to strong global demand for AI products.
Liu, speaking at the annual shareholders meeting in New Taipei, said AI remains highly sought after, with capital spending by major cloud service providers already exceeding US$700 billion (HK$5.46 billion) this year.
“Their capital expenditure is our market. It has already reached US$700 billion, and their capital expenditure next year is expected to potentially reach US$1 trillion. This gives us immense confidence in our future growth momentum,” he said.
The company, formally called Hon Hai Precision Industry, said this month it expects its capital expenditures to grow by 30 percent this year from last year’s NT$174 billion (HK$43.51 billion) as it expands manufacturing capacity for AI servers.
Foxconn’s shares have risen 19 percent so far this year, underperforming the broader Taiwan index’s 54 percent gain.
Reuters
