Foxconn - Mobile World Live

Foxconn commits $569M to boost US server output

Joseph Waring — Wed, 26 Nov 2025 06:17:21 +0000

Foxconn received approval from local authorities to invest an additional $569 million in increasing data server production in southern Wisconsin, with the expansion to create nearly 1,400 jobs.

The Wisconsin Economic Development Corp (WEDC) gave the green light for the investment in Mount Pleasant which will create 1,374 jobs over four years. As part of a new contract, WEDC will give Foxconn $16 million in additional performance-based tax incentives, from the first-stage investment that was revised in 2021.

Jerry Hsiao, Foxconn’s chief product officer and GM of Hon Hai USA, noted in a statement Wisconsin accounts for nearly a fourth of its workforce in the US, and this second-stage project will double its presence in the state by the end of the decade.

The contract electronics manufacturer added it spent more than $2 billion in Wisconsin over the last several years across payroll, capex and taxes.

Last week, OpenAI sealed a deal with Foxconn to co-design and manufacture AI data centre equipment in the US.

Back in 2019, the company purchased an office building in Milwaukee, Wisconsin, to serve as its first North American headquarters, a year after revealing plans to invest $10 billion over four years to build manufacturing facilities in the state. Those plans were later delayed.

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OpenAI taps Foxconn to build US AI data centre hardware

Amiya Johar — Fri, 21 Nov 2025 15:30:13 +0000

OpenAI inked a deal with Foxconn to co-design and manufacture AI data centre equipment in the US, marking the ChatGPT maker’s latest push to secure the infrastructure needed for its fast-growing models.

Under the agreement, Foxconn will work with OpenAI to create customised server racks optimised for AI workloads. The vendor will also manufacture and supply critical components including cabling, power systems and cooling.

The pair said that jointly engineered rack designs will help bring new systems online faster, while locally sourced architecture would improve reliability and deployment speeds to meet the “demands of AI workloads today and in the future”.

While the deal includes no purchase commitments, OpenAI will also get early access to Foxconn’s hardware and holds an option to buy. Meanwhile, the AI heavyweight will provide insight into evolving model requirements, giving Foxconn early visibility into emerging hardware needs.

OpenAI hailed the tie-up as a win for domestic technology manufacturing. CEO Sam Altman argued AI infrastructure represents “a generational opportunity to reindustrialise America”, calling the partnership “a step toward ensuring the core technologies of the AI era are built here”. He added the deal would “strengthen US leadership and help ensure the benefits of AI are widely shared”.

The move follows a flurry of multibillion-dollar compute deals OpenAI struck with players including Nvidia, AMD and Oracle as it races to scale up capacity.

Foxconn also continues to expand its AI footprint, unveiling a $1.4 billion supercomputing deal with Nvidia earlier today (21 November). According to Reuters, the 27-megawatt Taiwan cluster is set to go live in H1 2026, making it Asia’s first AI data centre built around Nvidia’s powerful GB300 AI platform.

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Foxconn confident of significant continued growth

Joseph Waring — Thu, 13 Nov 2025 09:07:10 +0000

Contract manufacturer Foxconn booked record net profit and sales in Q3 2025 and offered a bullish outlook for the near future, with its cloud and networking product unit to remain the main growth driver.

In an earnings call, Foxconn chair Young Lei said he is “very optimistic” about the AI market in 2026, expecting closer collaboration with major customers, expanding into more diverse AI solutions and securing more orders.

Regarding the traditional ICT industry, he is cautiously optimistic, noting in addition to stable business, there is potential demand for upgrades and new product development.

The company raised its full-year 2025 outlook for smart consumer electronics products to flat from a previous guidance for a slight decline. It forecasts shipments of next-generation AI servers to continue double-digit growth in the current quarter.

Liu expects “significant growth momentum” in both categories quarter-on-quarter and year-on-year.

He suggested at its annual tech day in Taipei next week it will make an announcement with OpenAI, without sharing details.

Net profit in the July to September period climbed 17 per cent year-on-year to TWD57.7 billion ($1.9 billion).

In early October, it reported revenue in the quarter increased 11 per cent to TWD2.1 trillion.

The cloud and networking product business accounted for 42 per cent of total revenue compared with 31.7 per cent a year earlier, while smart consumer electronics products’ share dropped to 37 per cent 44.8 per cent.

The Taiwan-headquartered company is a major supplier for Apple and Nvidia.

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Foxconn bullish on cloud growth

Joseph Waring — Fri, 06 Jun 2025 08:33:31 +0000

Taiwan-based contract manufacturer Foxconn booked record revenue in the first five months of 2025, forecasting cloud network products to maintain its growth trend.

The company noted its operating outlook in the current quarter is expected to see significant quarter-to-quarter and year-on-year gains, led by cloud network products maintaining its growth trend.

In a statement, the major Apple supplier cautioned it needs “to continue to pay attention to the impact of global political and economic situations and exchange rate changes”.

January to May sales grew 21.7 per cent to TWD2.9 trillion ($96.9 billion).

The company said its cloud portfolio, components and other products, and computer terminals grew rapidly year-on-year, while consumer smart product sales were flat.

Rival Wistron registered 54.5 per cent growth in revenue in April to TWD133.7 billion, after Q1 sales increased 44.8 per cent to TWD346 billion.

Pegatron, another Taiwan-headquartered electronics manufacturer, saw revenue increase 10.4 per cent to TWD375.3 billion in the first five months of the year.

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Apple partner Foxconn to invest $1.5B in India

Kavit Majithia — Mon, 19 May 2025 16:08:18 +0000

Apple supplier Foxconn reportedly outlined plans to invest $1.5 billion in India, as part of moves to increase iPhone production in the country.

In a stock exchange filing seen by Bloomberg, Foxconn stated it was making the outlay through its subsidiary in Singapore, which has already invested significantly in upping production capacity in India.

Details about the investment or how it would be spent was not revealed in the filing.

Apple is looking to India to help shield it from US tariffs on China, with a plan to apparently assemble all of its iPhones for the US market in the country by the end of 2026, amounting to more than 60 million units. If it was to hit that goal, it would double its current India output.

Currently, the bulk of iPhones made in India are assembled in the south of the country, at one of Foxconn’s plants. Bloomberg reported Foxconn assembled $22 billion worth of iPhones in the country in the year ending March 2025.

However, Apple is facing opposition from US President Donald Trump, who last week hit out at CEO Tim Cook about the push in India. Trump told Cook he was not interested in Apple “building in India” and it should instead focus on the US.

In response, Trump claimed Cook said Apple had plans to up its production capacity in its home market, however this remains unconfirmed.

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Apple, Samsung face hefty US tariff hit

Michael Carroll — Thu, 03 Apr 2025 09:56:42 +0000

Reaction to the implications of global import tariffs revealed by US President Donald Trump yesterday (2 April) is rolling in, with at least one observer so-far offering a predictably gloomy outlook.

CCS Insight chief analyst Ben Wood told Mobile World Live the US tariffs are likely to hit Apple and Samsung hard, in turn resulting in higher prices for consumers in the country.

Wood noted Apple and Samsung hold the “biggest share of smartphone sales in the US”, a problem given the pair rely heavily on China and Vietnam for manufacture of their devices.

The nations top the list of tariff rates unveiled by President Trump, with China’s levy at 34 per cent and Vietnam facing a 46 per cent fee.

Each figure is the reciprocal rate revealed by the US leader and China’s figure may be higher when other charges are included.

“If nothing changes quickly, it is likely retail prices will have to increase for smartphones and other consumer electronics devices”, Wood said.

A further problem Wood highlighted is the likely impact on Apple, Samsung and other consumer electronics manufacturers’ profit margins, which he expects to be lowered by moves to “cushion some of the additional cost” consumers might face.

Shift
Attempts by Apple’s key manufacturing partner Foxconn to reduce the company’s reliance on China by shifting production to other nations could prove of little relief, with Vietnam one of its alternative locations along with India, which faces a 26 per cent reciprocal rate.

Taipei Times reported Foxconn acquired $32.3 million-worth of equipment for its Indian operation through a subsidiary over the past six months as part of its plan to up capacity for Apple goods, alongside AI servers.

Samsung faces similar difficulties and even if it opted to halt all overseas production and bring it all back home would still face a significant 25 per cent reciprocal rate on South Korean imports.

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Foxconn backs AI servers after profit drop

Joseph Waring — Fri, 14 Mar 2025 09:27:11 +0000

Foxconn suffered a surprise drop in profit in the final quarter of 2024, with soft iPhones sales in China offsetting demand for AI servers.

Net profit dropped 13 per cent year-on-year to TWD46.2 billion ($1.4 billion).

In its earnings release, chair Liu Young forecast AI server sales to double in the current quarter and top TWD1 trillion for the full year, accounting for more than half of the company’s total server sales.

“A 40 per cent market share is our most conservative target.”

The company stated smart consumer electronics sales fell, while its cloud and networking; computing; components and others divisions achieved strong growth.

For 2025, it expects revenue in the consumer division to be flat and computing sales to fall, with growth in the other two groups.

In early January, the company reported record Q4 sales of TWD2.1 billion, up 15.2 per cent and forecast significant growth in the current quarter.

Sales in February rose 56 per cent and in January 3.2 per cent.

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Foxconn books record sales in Q4

Joseph Waring — Mon, 06 Jan 2025 09:17:38 +0000

Foxconn ended 2024 by recording its fastest monthly revenue gains for the year in December as well as record sales in Q4, and forecast significant growth in the current quarter.

Sales in the final month of 2024 jumped 42.3 per cent year-on-year to TWD654.8 billion ($19.9 billion), marking its second-highest figure for the month ever, while Q4 revenue was up 15.2 per cent to TWD2.1 trillion.

The contract manufacturer and iPhone assembler noted the revenue gains were driven by strong demand for AI servers, with a strong performance across all of its product groups except smart consumer electronics, which remained flattish.

Revenue for the full year improved 11.4 per cent to TWD6.86 trillion, also a record for the company.

Omdia last month forecast Foxconn’s ODM direct business would top its global server market analysis in 2024, overtaking Dell.

Manoj Sukumaran, senior principal analyst at Omdia, noted Foxconn “has more growth ahead”, after it secured a partnership with Nvidia to make it Blackwell GPU reference designs.

TrendForce predicts the value of the AI server segment will jump from about $205 billion last year to $298 billion in 2025, with growth to significantly outpace that of standard servers. AI servers are forecast to account for more than 70 per cent of the value of the entire server market this year.

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Foxconn expects further gains after record Q3

Joseph Waring — Mon, 07 Oct 2024 08:34:52 +0000

Contract manufacturer Foxconn turned in record sales in Q3 despite smart consumer electronics product revenue remaining flat year-on-year, as demand for AI servers and components for the automotive sector soared.

Revenue increased 20.2 per cent to TWD1.8 trillion ($55.9 billion), driven by growth in products related to cloud and networking, components and computing.

In a statement, Foxconn noted growth exceeded expectation and, as it enters a peak season, anticipates operations would “gradually gain momentum”.

Foxconn is a key supplier for Apple and noted sales of devices in the smart consumer category, which includes smartphones benefitted from new product launches.

For the first nine months of the year, revenue rose 9.7 per cent to TWD4.7 trillion, with sales in September up 33.7 per cent compared with August to TWD733 billion, the fastest sequential increase in 2024.

The company has rebounded since revenue in Q1 dropped 9.6 per cent to TWD1.3 trillion.

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Foxconn, Siemens eye factory of the future with pact

Chris Donkin — Wed, 15 May 2024 14:27:46 +0000

Contract manufacturer Hon Hai Technology Group (Foxconn) and industrial technology player Siemens outlined a partnership focused on driving digital transformation and upping sustainability at the former’s facilities.

The pair’s memorandum of understanding (MoU) outlines collaboration areas expected to increase levels of automation in Foxconn’s manufacturing plants. This will include use of Siemens factory technology and industrial software, and exploring use of digital twins.

Among the areas of focus are facilities in the Taiwan-based player’s Electronics Manufacturing Services division and Contract Design and Manufacturing Service for the electric vehicle industry.

Foxconn chair and CEO Young Liu said his company was “transforming into a platform solutions provider for smart manufacturing, smart EVs and smart cities”, adding its collaboration with Siemens “accelerates our digital transformation journey and opens up new possibilities for innovation and sustainability”.

The pair also cited an ambition to “define standards for the factory of the future and manufacturing processes” with a key part of the agreement around an ambition at the contract manufacturer to make energy savings and cut emissions.

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Foxconn raises renewable energy target

Joseph Waring — Tue, 23 Apr 2024 08:29:43 +0000

Foxconn advanced its environmental sustainability goal, setting a target for its worldwide operations to run on 100 per cent renewable energy sources by 2040.

The company currently uses more than 40 per cent green electricity, two years after it pledged to use at least 50 per cent green sources by 2030.

Foxconn also joined the global renewable energy initiative RE100.

Chair and CEO Young Liu said the company hopes to set an example with its supply chain and partners so they will prioritise sustainable management. “Foxconn will also promote green energy at its global locations.”

In September 2023, Taiwan Semiconductor Manufacturing Company advanced its sustainability timetable by a decade, aiming to use 100 per cent renewable energy for its global operations by 2040.

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Foxconn confirms shift to rotating CEO

Joseph Waring — Thu, 18 Apr 2024 08:59:35 +0000

Taiwan-headquartered contract manufacturer Foxconn reportedly confirmed a shift to a rotating CEO system, with the heads of the company’s six business groups each having a stint in the top position.

DigiTimes reported comments from the company’s chair Young Liu revealing the change, without disclosing which group head was first to take over or for how long. A six-month term is being considered.

The change applies only to the parent company, not its subsidiaries.

Liu noted Foxconn has rotated executives in other roles and had now implemented the system for the top position, adding the move helps future leaders prepare for the role by giving them a full view of the company’s operations.

The Apple supplier’s business group comprises smartphones, notebook computers, precision components, PCs and displays, TVs and game consoles, and chips.

Last week Reuters reported the company was considering changing its top management structure by introducing a rotating CEO system.

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Foxconn mulls shift to rotating CEO system

Joseph Waring — Fri, 12 Apr 2024 07:54:23 +0000

Taiwan-headquartered contract manufacturer Foxconn began looking to alter its top management structure, mulling rotating the CEO position, a move which has been on the table for several months, Reuters reported.

The shift is reportedly driven by calls for improved corporate governance and to better develop new leadership.

Reuters reported shareholders have pushed for the company to split the CEO and chair roles between two executives. Young Liu was appointed to both positions in 2019. He joined the company in 2007.

Huawei is one of the few global companies which rotates its top role. Three executives share the chair title, each holding the position for six months.

In March, Liu forecast “significant” growth in full-year sales, following a near 10 per cent drop in Q1.

Revenue from consumer electronics products have declined as iPhone demand in China has weakened over the past two quarters.

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Foxconn forecasts Q2 rebound

Joseph Waring — Mon, 08 Apr 2024 09:11:53 +0000

Contract manufacturer Foxconn stood by an earlier optimistic Q2 revenue guidance after sales in March rebounded, following sharp year-on-year declines in the first two months of 2024.

Q1 revenue fell 9.6 per cent year-on-year to TWD1.3 trillion ($40.5 billion). The company highlighted growth in cloud and networking products in the quarter, but added PC sales were flat and consumer electronics products declined.

The manufacturer expects revenue growth in the current quarter, which is part of a traditional off-peak season with major product lines entering a period of transition between old and new offerings.

In its Q4 earnings call last month, chairman and CEO Young Liu forecast “significant” growth in full-year sales despite an expected sales drop in Q1.

Major customer Apple is facing weaker demand for iPhones, driven mainly by a decline in China.

February data from the China Academy of Information and Communications Technology showed shipments of non-Chinese brand smartphones, with Apple’s iPhone accounting for the vast majority, dropped 31.7 per cent year-on-year to about 2.4 million units.

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Foxconn forecasts sales growth after profit spike

Joseph Waring — Thu, 14 Mar 2024 09:48:20 +0000

Foxconn registered a spike in profit growth in Q4 2023 despite falling sales, driven by demand for cloud and networking gear to power AI applications.

While previously forecasting revenue in the opening quarter of 2024 to decline year-on-year, chairman and CEO Young Liu said in an earnings call the company expects “significant” growth in full-year sales, aided by growing demand for servers.

Due to an increase in generative AI applications, he added “the visibility on AI servers has become very high, prompting an upward adjustment”. Inventory levels also improved at end-2023, falling 22 per cent from a peak in 2022.

Net profit jumped 33 per cent to TWD53.2 billion ($1.7 billion).

The contract manufacturer’s sales declined in recent months due to slowdown in iPhone demand in China. Counterpoint Research data showed unit sales in the country fell 24 per cent year-on-year in the first six weeks of 2024.

The company, a key supplier to Apple, reported in early January Q4 sales declined 5.4 per cent to TWD1.9 trillion. Revenue in the first two months of 2024 dropped nearly 18 per cent to TWD874.6 billion, with sales of smart consumer electronics products declining and computing products down slightly.

Capex in 2023 rose 14 per cent to TWD111.7 billion, with the 2024 outlay expected to be higher than last year and up for the fourth consecutive year.

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Foxconn warns of continued weak demand

Joseph Waring — Mon, 08 Jan 2024 10:02:07 +0000

Contract manufacturer Foxconn forecast revenue in the opening quarter of 2024 to decline year-on-year, following a fall in December 2023 due to slowing demand for cloud, networking and computing products.

Revenue in December 2023 tumbled 26.9 per cent year-on-year to TWD460.1 billion ($14.9 billion), with Q4 sales slipping 5.4 per cent to TWD1.9 trillion.

The drop is the major Apple supplier’s third consecutive quarterly decline, with full-year sales falling 7 per cent to TWD6.2 trillion.

Its performance in the final quarter of 2023 was hit by declines in smart consumer electronics, cloud and networking products, and computing equipment.

Sales of components and other products were flat.

The Taiwan-headquartered company last posted a quarterly gain in Q1 2023, when revenue rose 3.8 per cent to TWD1.5 trillion.

Last week, analysts with UK-headquartered bank Barclays downgraded Apple’s stock due to expected slowing demand for iPhones.

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Foxconn targets AR sector with Porotech

Joseph Waring — Fri, 15 Dec 2023 09:30:17 +0000

Foxconn outlined plans to reshape the AR landscape by partnering with Poro Technologies (Porotech) to develop microLED technology and integrate technology across diverse disciplines.

In a statement, the pair explained they will work on ultra-high-density and energy-efficient micro displays for AR, wearable and smart devices by combining Foxconn’s experience in chip manufacturing, packaging, module assembly and supply chain management with Porotech’s expertise in microLED-on-silicon and GaN-on-silicon platforms.

The companies stated the use of microLED devices for AR applications holds plenty of promise, but also challenges across a number of fields “including semiconductor wafer manufacturing…, IC design, optoelectronics, quantum physics and optics”, making integration difficult.

Foxconn and Porotech aim to establish an integrated end-to-end supply chain.

Bob Chen, GM of the semiconductor business group at Foxconn, stated the alliance will tap “the tremendous opportunities that AR can bring to the world”.

“We are excited to collaborate with Porotech to integrate many technologies from different fields.”

Porotech CEO and founder Zhu Tongtong added GaN-on-silicon’s role in advancing micro-LED-on-silicon tech is undeniable.

The company is a global fabless micro-LED company and specialist in gallium nitride (GaN)-based semiconductor technology.

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TSMC Q4 recovery stalls

Joseph Waring — Fri, 08 Dec 2023 10:12:04 +0000

Taiwan Semiconductor Manufacturing Company (TSMC) registered a decline in revenue in November, with sales for the first 11 months down 4.1 per cent year-on-year to TWD2 trillion ($63.8 billion).

Consolidated revenue in November declined 7.5 per cent to TWD206 billion.

The decline raises doubts about the state of the tech sector’s budding recovery.

Greater China

TSMC revenue drops again in Q3

By Joseph Waring

In October, TSMC forecast a recovery in revenue in the final quarter, citing signs of demand stabilisation.

Revenue that month was up 15.7 per cent at TWD243.2 billion.

Its Q3 revenue fell 10.8 per cent to TWD546.7 billion.

TSMC makes chips for Apple, Broadcom, MediaTek, Qualcomm, Nvidia and others.

Earlier this week, Taiwan-based contract manufacturer Foxconn booked an 18 per cent increase in revenue for November to TWD650 billion, following nine consecutive months of declines.

The major Apple supplier highlighted growth in smart consumer electronics products, components and other products, with computing products and cloud and networking equipment registering slight declines.

Foxconn stated its performance in October and November was slightly higher than expected, prompting it to raise its original Q4 guidance to “significant growth”.

Revenue between January and November was down 5 per cent to TWD5.7 trillion.

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Foxconn earmarks $1.6B for India expansion

Joseph Waring — Tue, 28 Nov 2023 09:53:43 +0000

Foxconn confirmed plans to add manufacturing capacity in India with a TWD50 billion ($1.6 billion) investment, following months of speculation about the size and location of its expanded operations.

In a stock market filing, the contract manufacturer and key Apple supplier stated the purpose of the investment was operational needs and did not disclose the site of the new facilities. The investment will be made through its subsidiary Hon Hai Technology India Mega Development.

With rising trade tension between the US and China, Apple for more than a year has been pushing its suppliers to diversity their operations by moving facilities out of China, where the company has assembled the vast majority of its devices for decades.

Foxconn’s representative in India previously unveiled aims to double employment, foreign direct investment and its business size in India, without giving any specifics.

Various news outlets reported in August the Apple supplier planned to invest an additional $500 million in two component factories in the state of Karnatakam, following plans disclosed in June to build a $700 million iPhone assembly plant in Bengaluru, the state capital of Karnataka.

Apple started manufacturing iPhones through Foxconn in the country in 2017 and has been increasing local production as its shifts assembly to other markets and reduces its reliance on China.

In mid-August, Foxconn began assembly of iPhone 15 models at a factory in southern India, soon after its facilities in China began shipments.

India’s government awarded INR450 billion ($5.4 billion) in incentives in 2020 to domestic and international electronics companies, including Foxconn.

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Foxconn China unit fined for minor accounting error

Joseph Waring — Wed, 22 Nov 2023 07:49:19 +0000

A Foxconn subsidiary in China was the first to be caught up in a tax and land-use probe of its parent’s operations in the country, with local tax authorities fining the unit CNY20,000 ($2,009) for a minor accounting issue, Bloomberg reported.

The news agency stated Foxconn Industrial Internet in the city of Wuhan was fined for overstating R&D expenses in 2021 and 2022.

Local media reported in late October the government had started a tax audit and review of Foxconn’s use of land in four provinces.

The move was criticised for being politically motivated and perhaps as a warning to Apple, which faces uncertainty in China following a ban on the use of iPhones for official business by central government agencies.

Foxconn is a key supplier for Apple and employed more than 1 million people in China at its peak, including up 350,000 workers at its iPhone assembly plan in Zhengzhou, the capital of east-central Henan province.

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China defends Foxconn probe

Joseph Waring — Wed, 25 Oct 2023 09:22:45 +0000

China’s government played down claims investigations into Taiwan-headquartered Foxconn’s taxes and land use on the mainland were politically motivated, insisting the actions are standard law-enforcement activities, an official told Bloomberg.

Zhu Fenglian, a Beijing-based representative handling ties with Taiwan, suggested in a briefing today (25 October) the probe may cover more than Foxconn’s business, citing social and trade duties, Bloomberg wrote.

Foxconn stated it will cooperate with the investigation.

The contract manufacturer is a key supplier for Apple and employed more than 1 million people in China at its peak, including up to 350,000 workers at its largest iPhone assembly plan in Zhengzhou, the capital of east-central Henan province.

Foxconn founder and former chairman Terry Gou is a presidential candidate in elections to be held in 2024.

Richard Windsor, founder of industry blog Radio Free Mobile, and Alastair Newton from consultancy Alavan Independent, wrote they believe the probe is either another warning shot at Apple, or a message regarding the election in Taiwan.

The pair stated that at first glance, the review is a surprise since China’s economy is stagnant and youth unemployment is high.

However, they added supporting China’s government is more important than economic recovery.

Reuters reported Taiwan’s VP and presidential candidate Lai Ching-te criticised the probe, arguing China should not put pressure on local companies during an election.

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Foxconn, Nvidia set sights on AI data centres

Hana Anandira — Wed, 18 Oct 2023 17:04:59 +0000

Foxconn penned a deal with US chipmaker Nvidia to develop AI data centres based on the latter’s computing infrastructure, powering various use cases in areas including robotics and EVs.

In a statement, Nvidia explained the so-called AI facilities will deploy its enterprise software and its GH200 Grace Hopper Superchip, said to be able to process vast amounts of data into AI models.

There are also plans for the companies to combine technologies to create new products, including a smart car and industrial robotics by Foxconn based on Nvidia’s chipsets for autonomous fleets and robots.

The Taiwan-based manufacturer will also integrate its smart city technology with Nvidia’s intelligent video analytics platform, and Foxconn claimed it will leverage its partner’s portfolio to build various systems for global customers who seek to operate their own AI factories or expand their AI-based offerings.

Further, Foxconn noted it will look to build its own AI factory powered by Nvidia’s Omniverse computing platform, designed to convert data into 3D simulations, along with a suite of developer tools.

Foxconn will provide its enterprise clients with Nvidia’s smart car solutions.

Nvidia CEO Jensen Huang (pictured, left) said the deal expanded the duo’s “decade-long partnership”. Earlier this year, the companies struck an agreement to jointly develop platforms for autonomous vehicles.

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Foxconn Q3 revenue hit by weak consumer demand

Joseph Waring — Fri, 06 Oct 2023 08:36:31 +0000

Apple supplier Foxconn registered a second consecutive quarter of year-on-year revenue declines in Q3, with sales falling in three of its four major product groups due to weak consumer demand.

The Taiwan-headquartered contract manufacturer stated operations will ramp as it moves into the holiday selling period, with Q4 expected to see significant growth compared with Q3.

Revenue in Q3 declined 11.7 per cent to TWD1.5 trillion ($46.9 billion).

The company said components and other products sales were flat, while smart consumer electronics computing products, and cloud and networking products all declined.

It pointed to a slowdown in PC demand and reduced orders for cloud products.

Sales in the first nine months of the year dropped 7.7 per cent to TWD4.3 trillion.

Foxconn forecasts full-year sales across all four products groups to fall.

It reports full Q3 results on 14 November.

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Foxconn starts work on iPhone 15 in India

Joseph Waring — Wed, 16 Aug 2023 10:25:35 +0000

Contract manufacturer Foxconn reportedly commenced production of the next iPhone model in a factory in southern India, as it continues to shift manufacturing to other markets and reduce its reliance on China.

In a sign India is closing the gap with China, Bloomberg wrote a factory in Sriperumbudur is working to ship the latest handset model just weeks after Foxconn’s facilities in China began shipments.

Apple is likely to release the iPhone 15 in September.

TF International Securities analyst Kuo Ming-Chi said in late 2022 Apple aims to move 40 per cent to 45 per cent of iPhone assembly to India, compared with a single-digit figure in 2022.

On an earnings call, Foxconn chair Liu Young explained while its focus in India is currently on assembly, it aims to produce key components for consumer electronics devices to raise its competitiveness in the country.

Bloomberg previously reported Foxconn plans to invest an additional $500 million in component factories in the state of Karnataka, one of which is expected to focus on iPhone parts.

Apple began assembling its iPhone 13 in Tamil Nadu in early 2022, its fourth device to be put together in India.

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Foxconn trims full-year forecast

Joseph Waring — Tue, 15 Aug 2023 10:40:23 +0000

Foxconn cut its full-year revenue guidance due to continued economic uncertainties including global monetary tightening, geopolitical tensions and inflation.

In an earnings release for Q2, Foxconn tipped annual revenue to decline slightly, compared with previous guidance for the metric to remain flat.

Chair Liu Young stated the company established a strategic partnership with Microsoft covering low Earth orbit (LEO) global satellite systems, with a plan to introduce space-based internet services for vehicles, smart cities and 5G communication infrastructure for enterprises.

Liu said while its focus in India is currently on assembly, it aims to produce key components for consumer electronics devices to raise its competitiveness in the country.

Net profit declined 1 per cent year-on-year to TWD33 billion ($1 billion).

It reiterated a revenue figure of TWD1.3 trillion, which it previously revealed was down 13.8 per cent.

The company forecast a moderate correction in its cloud and networking business for 2023, down from flat guidance. It also expects its computer business to drop, Taipei Times reported, citing its earnings call.

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Foxconn tipped for $500M India parts factory move

Joseph Waring — Tue, 01 Aug 2023 09:11:53 +0000

Foxconn plotted to up its investments in India as it shifts work out of China, with Bloomberg reporting the company will spend an additional $500 million on two component factories in the state of Karnataka.

Bloomberg stated one plant is likely to make components for iPhones.

In early June, Reuters reported Foxconn unveiled plans to build a $700 million iPhone assembly plant in Bengaluru, the state capital of Karnataka.

Foxconn’s shifts out of China goes beyond India: in June, chair Young Liu said it is targeting additional investment in Vietnam and Mexico to diversify its supply chain.

It received clearance from Vietnam authorities to invest $246 million in factories to assemble telecoms and vehicle equipment.

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Foxconn pulls out of $20B India chip venture

Kavit Majithia — Mon, 10 Jul 2023 13:51:55 +0000

Hon Hai Precision (Foxconn) withdrew from a joint venture with Indian conglomerate Vedanta Group to build semiconductor and display production plants in the country, in a blow to the state’s plans to bolster the segment.

In a brief statement, Foxconn said it had worked with Vedanta for more than a year to bring “a great semiconductor idea to reality”, but it had determined not to move forward. It has also removed its name from an entity that is now fully owned by Vedanta.

The companies agreed a pact last year to set up plants in a joint venture worth $19.5 billion in Gujarat, the home state of Prime Minister Narendra Modi, who has made the country’s chip sector a key priority to boost economic growth.

Foxconn’s reasons for withdrawing are not yet known, however Bloomberg reported at the end of May that the government was mulling blocking access to a state incentive scheme because the joint venture did not qualify for funding.

According to Bloomberg sources, the venture’s application for incentives did not meet certain criteria, even though Vedanta was one of 16 companies selected to receive funding as part of a INR450 billion ($5.4 billion) government scheme introduced in late 2020.

Foxconn’s withdrawal comes after US-based Micron revealed plans last month to invest $825 million in a new chip assembly and test facility, also in Gujarat.

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Foxconn predicts brighter sales

Joseph Waring — Thu, 06 Jul 2023 08:24:42 +0000

Hon Hai Technology (Foxconn) forecast revenue to improve in the current quarter on a shift into a peak season for consumer electronics, after registering a double-digit drop in Q2.

In a statement, the Taiwan-headquartered contract manufacturer predicted a gradual rise now the market is in an H2 pinnacle.

Aggregated monthly sales figures show a 13.8 per cent year-on-year decline to TWD1.3 trillion ($41.5 billion) in Q2.

Revenue from smart consumer electronics products including iPhones, declined, in line with a Foxconn forecast.

It recorded growth in computing, components and other products, while cloud and networking sales were flat.

Revenue in June marked its second-highest for the month after 2022, despite dropping 19.7 per cent to TWD422.8 trillion.

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Foxconn to invest $250M in Vietnam

Kavit Majithia — Fri, 30 Jun 2023 09:50:51 +0000

Electronics manufacturer Hon Hai Technology Group (Foxconn) reportedly received the go-ahead from authorities in Vietnam to invest $246 million in assembling telecoms and electronic vehicle (EV) equipment in the country.

Reuters reported Foxconn will spend $200 million on creating a factory to produce EV chargers and components from January 2025 and employ a workforce of 1,200 people.

The move is in line with a broader aim to capture 5 per cent of the global EV market by 2025 and follows a partnership struck with NXP Semiconductors to develop platforms and connectivity systems for the automotive industry.

Foxconn’s remaining investment pot will be earmarked for a plant to produce telecoms and electronics components from October 2024.

Both facilities will be in the northern province of Quang Ninh and will be managed by Foxconn Singapore.

Foxconn has had a presence in Vietnam for almost two decades and the latest investment raises the total it has ploughed into the country to $3 billion.

Last month, it announced a spend of $100 million on another new factory in the country’s central province of Nghe An.

Foxconn chair Young Liu said earlier this month the company is targeting additional investment in Vietnam and Mexico as it shifts assembly out of China due to deteriorating relations between the country and the US.

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Foxconn targets shift to EVs to fuel growth

Joseph Waring — Fri, 16 Jun 2023 08:15:15 +0000

The chair of contract manufacturer Hon Hai Technology Group (Foxconn) outlined plans to prepare for deteriorating relations between China and the US, with the major Apple supplier looking to electric vehicles (EVs) to drive future growth, BBC News reported.

Chair Young Liu told BBC News Foxconn must be prepared for a worst-case scenario as the US and China continue to lock horns.

He explained business continuity plans involve shifting the manufacture of products covered by national security concerns from China to Mexico and Vietnam.

His comments comes as Foxconn steps up moves to shift assembly of devices out of China.

Last week, it reportedly started work on a new factory in southwest India to make iPhones.

Foxconn unveiled two prototype EVs in 2022 and aims to capture 5 per cent of the global market by 2025, GizmoChina reported.

The company teamed with NXP Semiconductors in 2022 to develop electric vehicle platforms and connectivity systems.

At the time, Liu said Foxconn saw potential in the automotive industry.

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