Foxconn bets on AI servers as cloud spending heads toward $1 trillion milestone

Foxconn has immense confidence in growth momentum due to AI, chairman says

Taiwan's Foxconn sees strong growth driven by AI demand. Chairman Young Liu is optimistic about the second half of the year. Cloud providers' massive AI investments are fueling this confidence. Foxconn, a key supplier for Nvidia and Apple, reported a profit rise. The company expects its capital expenditure to grow significantly this year to expand AI server manufacturing capacity. Taiwan's Foxconn, the world's largest contract electronics manufacturer, has immense confidence in its growth momentum because of soaring AI demand, Chairman Young Liu said on Friday. The traditional mid-year seasonal slump for tech suppliers no longer happens, Liu told an annual shareholders meeting in New Taipei, adding that he was very optimistic about the second ⁠half ⁠of the year. "Unless a highly severe 'black swan' event occurs - which I haven't seen, and there are currently no signs of - based on what we see now, the second half of the year looks very good." He noted colossal investment in AI by major cloud service providers that has exceeded $700 billion this year. "Their capital expenditure is our market. It has already reached $700 billion, and ⁠their capital expenditure next year is expected to potentially reach $1 trillion. This gives us immense confidence in our future growth momentum," he said. Foxconn, ⁠which is Nvidia's biggest server maker and Apple's top iPhone assembler, this month reported a forecast-beating 19% rise in first-quarter profit. Asked about the impact of the global shortage of memory chips, Liu said some of Foxconn's high-end customers had been affected but not in a significant way. "If the high-end market is impacted, the entire world will feel it, and we hope that doesn't happen. So for us, the current situation is that the impact on our clients through the end of the year is limited," he said. The company, formally called Hon Hai ⁠Precision Industry, said this month it expects its capital expenditure to grow 30% this year from last year's T$174 billion ($5.6 billion) as it expands manufacturing capacity for AI servers. The company's shares closed up 9.9% on Friday, after Dell, which also makes AI servers, gave an upbeat forecast, sending its own shares soaring. Foxconn's shares have risen 25% so far this year, though that has underperformed the broader Taiwan index's 55% gain. ($1 = 31.3720 Taiwan dollars)

Foxconn has 'immense confidence' in growth momentum due to AI, chairman says

Foxconn, the world's largest contract electronics maker, expressed immense confidence in its growth due to soaring AI demand. The company reported a 19% rise in first-quarter profit, driven by strong global demand for AI products. Chairman Young Liu highlighted that cloud service providers' capital expenditure, projected to reach $1 trillion next year, represents a significant market for Foxconn. NEW TAIPEI: 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, this month reported a 19% rise in first-quarter profit versus the same period a year earlier, beating expectations due to strong global demand for AI products. Liu, speaking at an annual shareholders meeting in ⁠Taipei's neighbouring city of New Taipei, said AI remains highly sought after, with capital spending ⁠by the major cloud service providers already exceeding $700 billion this year. "Their capital expenditure is our market. It has already reached $700 billion, and their capital expenditure next year is expected to potentially reach $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% this year from last year's T$174 billion ($5.55 billion) as it expands manufacturing capacity for AI servers. The company's shares have risen 19% so far this year, underperforming the broader Taiwan index's 54% gain.

Foxconn Shares Jump as It Plans Push Into Next-Gen AI Tech

By Yang Jie and Sherry Qin Foxconn Technology Group's shares surged Friday as its chairman outlined a push into next-generation technology critical for the artificial?intelligence infrastructure buildout. The Taiwanese company, which supplies Nvidia with AI servers, is in the process of scaling up production of co-packaged optics, or CPO, a data-transmission technology produced by only a handful of manufacturers worldwide at scale. Shares of Foxconn, formally known as Hon Hai Precision Industry, jumped 9.9% on Friday in Taipei, close to the 10% daily limit. The benchmark Taiex index ended 2.5% higher. Speaking at an annual shareholders meeting, Foxconn's chairman, Young Liu, said the company plans to ship about 10,000 CPO switches this year to meet client demand for massive AI builds. Next year, output is expected to multiply, he added. As AI workloads push electrical links to their limits, data-center operators are seeking faster, more power?efficient optical connections. That has made CPO one of the most closely watched technologies in the AI infrastructure stack. CPO places high-speed optical connections directly inside switching hardware, replacing traditional pluggable transceivers to deliver faster data throughput and lower power use. Analysts expect CPO to be pushed further into the spotlight as AI giants like Nvidia incorporate optical technologies into future AI-networking systems and chipmakers like TSMC support the advanced packaging work needed to produce them at scale. Continued demand from cloud service providers is set to further underpin Foxconn's outlook, Liu said. After topping $700 billion this year, spending by major cloud providers could rise to $1 trillion in 2027, the chairman said. "Their capital expenditure is our market," Liu said, adding that this gives Foxconn great confidence in future growth.