Taiwanese tech big Foxconn on Tuesday reported a 72% bounce in internet revenue through the first three months of 2024 as demand for synthetic intelligence know-how grows.
The agency — additionally recognized by its official identify Hon Hai Precision Business — is the world’s largest contract electronics producer and assembles units for a number of firms, most notably Apple’s iPhones.
It stated internet revenue for January-March rose to USD 679 million from USD 396 million in the identical interval final yr.
Whereas the increase is the third consecutive quarter of revenue progress, it’s nonetheless under expectations, and Foxconn spokesperson James Wu sought to color an upbeat image throughout Tuesday’s earnings name.
“We anticipate that the sturdy demand for AI servers will carry a brand new large market, which is why we’re optimistic about this trade,” he stated.
He added that “Hon Hai is nearly the one producer that may develop each key part by itself, from modules, primary servers, high-speed community switches, to knowledge centres”.
Foxconn’s management additionally launched a press release proper earlier than the earnings name to reaffirm its dedication to Japanese electronics maker Sharp, wherein the Taiwanese agency holds the most important stake of greater than 30%.
Its low base in 2023 was attributed to the losses of Sharp, based on feedback made through the name.
“(Sharp) listed asset impairment… which affected Foxconn’s non-operational and internet revenue performances within the first quarter,” stated Wu.
However “the worst is behind Sharp”, he added. “Its future solely will get higher from right here.”
The corporate stated Sharp can be reworking its Sakai manufacturing facility into an “AI knowledge centre”, with no additional particulars about what that may entail.
Wu stated Foxconn supposed to collaborate extra with the Japanese agency “within the areas of good merchandise for folks, autos, residence and workplace… to grab new alternatives within the AI server know-how revolution”.
Foxconn had prior to now credited its regular efficiency progress to sturdy demand for generative AI, a know-how that has seen a surge in demand lately.
The agency has declared ambitions to maneuver past electronics meeting, investing considerably to be a part of the AI know-how market to transition right into a “complete conditions platform supplier”.
Most notably, Foxconn introduced final October it could crew up with US chip big Nvidia to create “AI factories” — highly effective data-processing centres that may drive the manufacturing of next-generation merchandise.
The majority of Foxconn’s operations are based mostly in China, and it’s the nation’s largest private-sector employer with greater than one million staff.
However it’s trying to diversify its manufacturing provide chain after manufacturing was impacted by three years of strict Covid insurance policies, a bout of business unrest and diplomatic tensions with the US.
Foxconn stated in November it was planning an extra USD 1.54 billion funding in India for “operational wants”, after asserting the acquisition of an enormous tract of land on the outskirts of tech hub Bengaluru final yr.
