Taiwanese tech giant Foxconn has reported a significant increase in net profit for the first quarter of 2024, with a 72 percent jump compared to the same period last year. The company, also known as Hon Hai Precision Industry, attributed this growth to the rising demand for artificial intelligence technology.
With net profit reaching US$679 million, up from US$396 million in the previous year, Foxconn’s performance marks the third consecutive quarter of profit growth. Despite falling slightly below expectations, Foxconn spokesperson James Wu remains optimistic about the future, citing the strong demand for AI servers as a key driver for growth.
Foxconn’s commitment to Japanese electronics maker Sharp, in which the company holds a significant stake, was also highlighted during the earnings call. The company plans to transform Sharp’s Sakai factory into an “AI data centre”, signaling a strategic move towards expanding its presence in the AI technology market.
Furthermore, Foxconn’s collaboration with US chip giant Nvidia to create “AI factories” underscores the company’s ambition to transition into a comprehensive AI technology provider. As the world’s largest contract electronics manufacturer, Foxconn is looking to diversify its manufacturing supply chain and expand its operations beyond China.
With plans for additional investments in India and a focus on developing smart products for various industries, Foxconn is positioning itself to capitalize on the growing demand for AI technology. Despite facing challenges such as Covid-related disruptions and diplomatic tensions, Foxconn remains optimistic about its future prospects in the rapidly evolving tech landscape.