Foxconn's Q2 Profit Surges 27% on Booming AI Server Demand, Outpacing iPhone Business

AI demand expected to boost electronics giant Foxconn's second-quarter profit

TAIPEI, Aug 14 (Reuters) - Taiwan's Foxconn (2317.TW), opens new tab, the world's largest contract electronics maker, is expected to report on Thursday that second-quarter profit rose 14% on continued strong demand for artificial intelligence servers. Net profit for April-June for Apple's (AAPL.O), opens new tab top iPhone assembler and Nvidia's (NVDA.O), opens new tab server maker likely came in at T$39.8 billion ($1.33 billion), up from T$35.05 billion a year earlier. Foxconn, formally called Hon Hai Precision Industry, last month reported record second-quarter revenue on strong demand for AI products but cautioned about geopolitical and exchange rate headwinds. Global trade uncertainty could dim the prospects for its outlook this year, as it has a major manufacturing presence in China, though Washington and Beijing this week extended a tariff truce for another 90 days. Most of the iPhones Foxconn makes for Apple are assembled in China, but the bulk of those sold in the United States are now produced in India. The company is also building factories in Mexico and Texas to make AI servers for Nvidia. In its July sales report, Foxconn said while the third quarter should see on-year growth - the company does not provide numerical guidance - the impact of "evolving global political and economic conditions" would need continued close monitoring. Foxconn has also been looking to expand its footprint in electric vehicles, which the company sees as a major future growth generator, though that has not always gone smoothly. Earlier this month, Foxconn said it had struck a deal to sell a former car factory at Lordstown, Ohio, for $375 million, including its machinery, but said it would continue to use the site to make a broader range of products aligned with its strategic priorities. Foxconn has expanded beyond its traditional role as an iPhone assembler in other areas too. Last month it formed a strategic partnership with industrial motor maker TECO Electric & Machinery (1504.TW), opens new tab to build data centres. Foxconn holds its earnings call at 3 p.m. (0700 GMT) in Taipei on Thursday, where it will also update its outlook for the year. Foxconn's shares have risen 7.9% so far this year, outperforming the broader Taiwan index's (.TWII), opens new tab 5.8% gain. ($1 = 30.0020 Taiwan dollars) Reporting by Wen-Yee Lee; Editing by Ben Blanchard and Sonali Paul Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Artificial Intelligence * ADAS, AV & Safety * Software-Defined Vehicle * Sustainable & EV Supply Chain

AI demand propels electronics giant Foxconn's second-quarter profit

TAIPEI, Aug 14 (Reuters) - Taiwan's Foxconn, the world's largest contract electronics maker, posted a 27% rise in second-quarter profit, beating market forecasts, on strong demand for artificial intelligence servers. Net profit for the April-June period for Nvidia's (NVDA.O), opens new tab biggest server maker and Apple's (AAPL.O), opens new tab top iPhone assembler was T$44.4 billion ($1.48 billion), higher than the consensus estimate of T$38.8 billion compiled by LSEG. Foxconn, formally called Hon Hai Precision Industry, last month reported record second-quarter revenue on strong demand for AI products but cautioned about geopolitical and exchange rate headwinds. In its earnings report, Foxconn said it should see significant year-on-year revenue growth in the third quarter, with AI server revenue expected to leap more than 170% year-on-year. For its full-year revenue, it forecast significant year-on-year growth, in line with previous guidance given in May. It did not elaborate and the company does not provide numerical guidance. In the second quarter, revenue for its cloud and networking business, which includes AI servers, exceeded that from smart consumer electronics - such as iPhones - for the first time. Global trade uncertainty could dim the prospects for its outlook this year, as it has a major manufacturing presence in China, though Washington and Beijing this week extended a tariff truce for another 90 days. Most of the iPhones Foxconn makes for Apple are assembled in China, but the bulk of those sold in the United States are now produced in India. The company is also building factories in Mexico and Texas to make AI servers for Nvidia. Foxconn has also been looking to expand its footprint in electric vehicles, which the company sees as a major future growth generator, though that has not always gone smoothly. Earlier this month, Foxconn said it had struck a deal to sell a former car factory at Lordstown, Ohio, for $375 million, including its machinery, that it purchased in 2022 to manufacture EVs. However, it will continue to occupy the facility and a source familiar with the matter said it could support artificial intelligence data centres. Foxconn has also expanded beyond its traditional role as an iPhone assembler into other areas too. Last month it formed a strategic partnership with industrial motor maker TECO Electric & Machinery (1504.TW), opens new tab to build data centres. Foxconn will hold its earnings call at 3 p.m. (0700 GMT) in Taipei on Thursday, where it will also update its outlook for the year. Foxconn's shares have risen 8.4% so far this year, outperforming the broader Taiwan index's (.TWII), opens new tab 5.2% gain. Its shares closed up 0.5% on Thursday ahead of the earnings call. ($1 = 29.9600 Taiwan dollars) Reporting by Wen-Yee Lee and Faith Hung; Editing by Ben Blanchard and Christian Schmollinger Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Artificial Intelligence * ADAS, AV & Safety * Software-Defined Vehicle * Sustainable & EV Supply Chain

Foxconn sees robust AI demand continuing after Q2 profit tops forecast

TAIPEI, Aug 14 (Reuters) - Foxconn expects higher third-quarter revenue, it said on Thursday, on robust demand for artificial intelligence servers, which helped the world's largest contract electronics maker report a forecast-beating 27% increase in second-quarter profit. Foxconn (2317.TW), opens new tab said it should see significant year-on-year revenue growth in the third quarter, with AI server revenue expected to leap more than 170% year-on-year. Nvidia's (NVDA.O), opens new tab biggest server maker and Apple's (AAPL.O), opens new tab top iPhone assembler has been riding a data centre boom, as cloud computing firms such as Amazon (AMZN.O), opens new tab, Microsoft (MSFT.O), opens new tab and Alphabet's (GOOGL.O), opens new tab Google spend billions of dollars to expand their AI infrastructure and research capacity. That boom helped Foxconn's revenue from its cloud and networking business, which includes AI servers, exceed that from smart consumer electronics - such as iPhones - for the first time ever in the second quarter. Yet, global trade uncertainty could dim the prospects for its outlook this year, as it has a major manufacturing presence in China, though Washington and Beijing this week extended a tariff truce for another 90 days. Most of the iPhones Foxconn makes for Apple are assembled in China, but the bulk of those sold in the United States are now produced in India. The company is also building factories in Mexico and Texas to make AI servers for Nvidia. Foxconn has also been looking to expand its footprint in electric vehicles, which the company sees as a major future growth generator, though that has not always gone smoothly. Earlier this month, Foxconn said it had struck a deal to sell a former car factory at Lordstown, Ohio, for $375 million, including its machinery, that it purchased in 2022 to manufacture EVs. However, it will continue to occupy the facility. The company said in its earnings call with analysts and media on Thursday the Ohio plant would be used to manufacture cloud-related products. Foxconn has also expanded beyond its traditional role as an iPhone assembler into other areas too. Last month it formed a strategic partnership with industrial motor maker TECO Electric & Machinery (1504.TW), opens new tab to build data centres. Net profit for the April-June period was T$44.4 billion ($1.48 billion), higher than the consensus estimate of T$38.8 billion compiled by LSEG, the company said. Foxconn, formally called Hon Hai Precision Industry, last month reported record second-quarter revenue on strong demand for AI products but cautioned about geopolitical and exchange rate headwinds. For its full-year revenue, it forecast significant year-on-year growth, in line with previous guidance given in May. It did not elaborate and the company does not provide numerical guidance. Foxconn's shares have risen 8.4% so far this year, outperforming the broader Taiwan index's (.TWII), opens new tab 5.2% gain. Its shares closed up 0.5% on Thursday ahead of the earnings release. ($1 = 29.9600 Taiwan dollars) Reporting by Wen-Yee Lee and Faith Hung; Editing by Ben Blanchard and Christian Schmollinger Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Artificial Intelligence * ADAS, AV & Safety * Software-Defined Vehicle * Sustainable & EV Supply Chain

Foxconn sees robust AI demand as second-quarter profit tops forecast

TAIPEI, Aug 14 (Reuters) - Foxconn on Thursday forecast a significant rise in third-quarter revenue as the world's biggest iPhone maker said it had for the first time made more money from its AI server business than from smart electronics last quarter. The company (2317.TW), opens new tab said artificial intelligence server revenue is expected to leap more than 170% year-on-year in the coming quarter, though it also warned of uncertainty from U.S. tariffs. Nvidia's (NVDA.O), opens new tab biggest server maker and Apple's (AAPL.O), opens new tab top iPhone assembler has been riding a data centre boom, as cloud computing firms such as Amazon (AMZN.O), opens new tab, Microsoft (MSFT.O), opens new tab and Alphabet's (GOOGL.O), opens new tab Google spend billions of dollars to expand their AI infrastructure and research capacity. Cloud and networking products, which include servers, accounted for 41% of its revenue in the second quarter, while smart consumer products represented 35%, the company said. The contribution from the server business to its revenue is set to grow further in the current quarter, as Foxconn expects a slight decline in smart consumer electronics revenue. Some experts expect iPhone sales to slow after they surged in the June quarter ahead of the expected imposition of U.S. tariffs. "AI has been the primary growth driver so far this year," Kathy Yang, rotating CEO of Foxconn, said on a call with media and analysts. She warned however that "close attention is needed due to the impact of changes in tariffs and exchange rates". The company said on Thursday its capital spending would rise more than 20% this year, as it plans to boost server production capacity in its manufacturing sites in Texas and Wisconsin. Global trade uncertainty and particularly the trade spat between the U.S. and China could dim its outlook this year as it has a major manufacturing presence in China, though Washington and Beijing this week extended a tariff truce for another 90 days. Most of the iPhones Foxconn makes for Apple are assembled in China, but the bulk of those sold in the U.S. are now produced in India. The company is also building factories in Mexico and Texas to make AI servers for Nvidia. LORDSTOWN SOLD Foxconn has also been looking to expand its footprint in electric vehicles, which the company sees as a major future growth generator, though that has not always gone smoothly. Earlier this month, Foxconn said it had struck a deal to sell a former car factory at Lordstown, Ohio, for $375 million that it purchased in 2022 to manufacture EVs. However, it will continue to occupy the facility. The company said the Ohio plant would be used to manufacture cloud-related products. The goal of manufacturing its Model C EV for the U.S. market remains unchanged, although initial production will take place in Taiwan, Foxconn said. A source familiar with the matter told Reuters that the plant was sold to its partner SoftBank. Foxconn and SoftBank declined to comment. Overall, the company reported net profit for the April-June period of T$44.4 billion ($1.48 billion), higher than the consensus estimate of T$38.8 billion compiled by LSEG. Foxconn, formally Hon Hai Precision Industry, last month reported record second-quarter revenue on strong demand for AI products, but cautioned over geopolitical and exchange rate headwinds. Its shares have risen 8.4% so far this year, outperforming the broader Taiwan index's (.TWII), opens new tab 5.2% gain. They closed up 0.5% on Thursday ahead of the earnings release. ($1 = 29.9600 Taiwan dollars) Reporting by Wen-Yee Lee and Faith Hung; Additional reporting by Sam Nussey in Tokyo; Editing by Ben Blanchard, Christian Schmollinger, Mark Potter, Joe Bavier and Jan Harvey Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Artificial Intelligence * ADAS, AV & Safety * Software-Defined Vehicle * Sustainable & EV Supply Chain

AI demand boosts iPhone maker Foxconn's second-quarter profit by 27%, beating forecasts

Taiwan's Foxconn, the world's largest contract electronics maker, reported Thursday that its second-quarter operating profit rose 27% year over year, on the strength of its growing artificial intelligence server business. Here's how Foxconn did in the second quarter of 2025 compared with LSEG SmartEstimates, which are weighted toward forecasts from analysts who are more consistently accurate: * Revenue: 1.79 trillion New Taiwan dollars ($59.73 billion) vs. NT$1.79 trillion * Operating profit: NT$56.596 billion vs. NT$49.767 billion The company's net profit for the second quarter came in at NT$44.36 billion, beating LSEG's SmartEstimates of NT$38.81 billion. Foxconn, formally called Hon Hai Precision Industry, is the world's largest manufacturer of Apple's iPhones, and has been looking to replicate its success in consumer electronics in the world of AI. The firm manufactures server racks designed for AI workloads and has become a key partner to American AI chip darling Nvidia. In an earnings report, the company forecasted that revenue from its AI server business would grow over 170% year over year in the current quarter. Foxconn reported Aug. 5 that it expected further revenue growth in the third quarter, but noted that the impact of "evolving global political and economic conditions" would be closely monitored. On July 30, Foxconn announced that it was taking a stake in industrial motor maker TECO Electric & Machinery in a strategic partnership to build AI data centers. The company has also shown its willingness to expand into new areas, including the assembly of electric vehicles and even the manufacturing of semiconductors. However, U.S. President Donald Trump's global tariffs could impact Foxconn's outlook this year. In response to Trump's tariff threats, the company has already moved most of its final production of made-for-the-U.S. iPhones to India.

iPhone maker Foxconn boosted profit building AI servers

The demand for artificial intelligence servers boosted Foxconn's earnings. The Taiwanese electronics manufacturer, best known for making iPhones, reported on Thursday that it generated 1.79 trillion New Taiwan dollars ($59.64 billion) in second-quarter revenue. The company said that its growing AI server business gave quarterly operating profit a 27% bump year-over-year, a record-high for second-quarter results. Foxconn's current rotating CEO Kathy Yang said in a press release that the company expects its AI server business to grow 170% year-over-year in the third quarter; the electronics maker projects that its annual AI server-related revenue will top 1 trillion New Taiwan dollars. Yang said this "sustained growth" demonstrates AI computing demand and industry momentum. The company predicts significant growth in the third quarter as it enters what is traditionally its peak operating season, Yang said. She expects cloud and networking to be the largest drivers of business in the second half of the year, along with strong growth in smart consumer electronics. Foxconn is the world's largest contract electronics maker and the largest producer of Apple's iPhone, several outlets including CNBC and CNN reported. But tariffs have complicated the company's relationship with Apple. Apple said in late April that it wants to shift all production for U.S.-sold iPhones from China to India by the end of 2026 as the trade war between the U.S. and China was escalating. So Foxconn began shipping iPhones from India to the U.S. to avoid tariffs on products from China. In June, Reuters reported that between March and May 2025, Foxconn shipped $3.2 billion worth of iPhones from India, with 97% bound for U.S. soil. -- Shannon Carroll contributed to this article.

AI demand expected to boost electronics giant Foxconn's second-quarter profit - The Economic Times

Taiwan's Foxconn, the world's largest contract electronics maker, is expected to report on Thursday that second-quarter profit rose 11% on continued strong demand for artificial intelligence servers. Foxconn, formally called Hon Hai Precision Industry, last month reported record second-quarter revenue on strong demand for AI products but cautioned about geopolitical and exchange rate headwinds. Global trade uncertainty could dim the prospects for its outlook this year, as it has a major manufacturing presence in China, though Washington and Beijing this week extended a tariff truce for another 90 days. Most of the iPhones Foxconn makes for Apple are assembled in China, but the bulk of those sold in the United States are now produced in India. The company is also building factories in Mexico and Texas to make AI servers for Nvidia. In its July sales report, Foxconn said while the third quarter should see on-year growth - the company does not provide numerical guidance - the impact of "evolving global political and economic conditions" would need continued close monitoring. Foxconn has also been looking to expand its footprint in electric vehicles, which the company sees as a major future growth generator, though that has not always gone smoothly. Earlier this month, Foxconn said it had struck a deal to sell a former car factory at Lordstown, Ohio, for $375 million, including its machinery, but said it would continue to use the site to make a broader range of products aligned with its strategic priorities. Foxconn has expanded beyond its traditional role as an iPhone assembler in other areas too. Last month it formed a strategic partnership with industrial motor maker TECO Electric & Machinery to build data centres. Foxconn holds its earnings call at 3 p.m. (0700 GMT) in Taipei on Thursday, where it will also update its outlook for the year. Foxconn's shares have risen 7.9% so far this year, outperforming the broader Taiwan index's 5.8% gain.

Foxconn sees robust AI demand as second-quarter profit tops forecast - The Economic Times

The company said artificial intelligence server revenue is expected to leap more than 170% year-on-year in the coming quarter, though it also warned of uncertainty from US tariffs.Foxconn on Thursday forecast a significant rise in third-quarter revenue as the world's biggest iPhone maker said it had for the first time made more money from its AI server business than from smart electronics last quarter. The company said artificial intelligence server revenue is expected to leap more than 170% year-on-year in the coming quarter, though it also warned of uncertainty from US tariffs. Nvidia's biggest server maker and Apple's top iPhone assembler has been riding a data centre boom, as cloud computing firms such as Amazon, Microsoft and Alphabet's Google spend billions of dollars to expand their AI infrastructure and research capacity. Cloud and networking products, which include servers, accounted for 41% of its revenue in the second quarter, while smart consumer products represented 35%, the company said. The contribution from the server business to its revenue is set to grow further in the current quarter, as Foxconn expects a slight decline in smart consumer electronics revenue. Some experts expect iPhone sales to slow after they surged in the June quarter ahead of the expected imposition of US tariffs. "AI has been the primary growth driver so far this year," Kathy Yang, rotating CEO of Foxconn, said on a call with media and analysts. She warned however that "close attention is needed due to the impact of changes in tariffs and exchange rates". The company said on Thursday its capital spending would rise more than 20% this year, as it plans to boost server production capacity in its manufacturing sites in Texas and Wisconsin. Global trade uncertainty and particularly the trade spat between the US and China could dim its outlook this year as it has a major manufacturing presence in China, though Washington and Beijing this week extended a tariff truce for another 90 days. Most of the iPhones Foxconn makes for Apple are assembled in China, but the bulk of those sold in the US are now produced in India. The company is also building factories in Mexico and Texas to make AI servers for Nvidia. Lordstown sold Foxconn has also been looking to expand its footprint in electric vehicles, which the company sees as a major future growth generator, though that has not always gone smoothly. Earlier this month, Foxconn said it had struck a deal to sell a former car factory at Lordstown, Ohio, for $375 million that it purchased in 2022 to manufacture EVs. However, it will continue to occupy the facility. The company said the Ohio plant would be used to manufacture cloud-related products. The goal of manufacturing its Model C EV for the US market remains unchanged, although initial production will take place in Taiwan, Foxconn said. A source familiar with the matter told Reuters that the plant was sold to its partner SoftBank. Foxconn and SoftBank declined to comment. Overall, the company reported net profit for the April-June period of T$44.4 billion ($1.48 billion), higher than the consensus estimate of T$38.8 billion compiled by LSEG. Foxconn, formally Hon Hai Precision Industry, last month reported record second-quarter revenue on strong demand for AI products, but cautioned over geopolitical and exchange rate headwinds. Its shares have risen 8.4% so far this year, outperforming the broader Taiwan index's 5.2% gain. They closed up 0.5% on Thursday ahead of the earnings release.

Apple Supplier Foxconn Profit Set For 11% Jump As AI Server Boom Powers Record Revenue: Report - Apple (NASDAQ:AAPL), Hon Hai Precision (OTC:HNHPF)

Taiwan's Foxconn, also known as Hon Hai Precision Industry Co. HNHPF, the world's largest contract electronics maker and key Apple Inc. AAPL supplier, is set to report Thursday that second-quarter profit rose 11% amid surging artificial intelligence server demand. Strong AI Server Demand Fuels Growth Net profit for April-June likely reached 38.8 billion TWD ($1.30 billion), up from 35.05 billion TWD ($1.17 billion) year-over-year, according to LSEG consensus estimates, via a Reuters report. The electronics giant, formerly known as Hon Hai Precision Industry, reported record second-quarter revenue last month, driven by robust demand for AI products. Foxconn serves as Apple's top iPhone assembler and manufactures servers for Nvidia Corp. NVDA, positioning the company at the center of the AI infrastructure boom. The company is building new facilities in Mexico and Texas specifically for AI server production. Geopolitical Headwinds Present Challenges Despite strong fundamentals, Foxconn cautioned about the potential impact of geopolitical tensions and currency fluctuations on its outlook. The company maintains major manufacturing operations in China, creating exposure to U.S.-China trade uncertainties, though Washington and Beijing extended their tariff truce for 90 days this week. Most Foxconn-assembled iPhones for the U.S. market now come from India rather than China, reflecting Apple's supply chain diversification strategy amid ongoing trade tensions. See Also: WhatsApp And Telegram Users In Russia Face New Restrictions On Voice Calls As Trump-Putin Alaska Meet Looms Expansion Beyond Traditional Assembly Foxconn is diversifying beyond its core iPhone assembly business. The company recently formed a strategic partnership with TECO Electric & Machinery to build data centers and sold its Lordstown, Ohio factory for $375 million while maintaining operational presence. The electronics manufacturer also pursues electric vehicle opportunities, viewing EVs as a major future growth driver despite mixed results in that sector. Earnings Call and Stock Performance Foxconn holds its quarterly earnings call at 3.00 PM Taipei time on Thursday, where executives will provide updated yearly guidance. Company shares have gained 7.9% year-to-date, outperforming Taiwan's broader market index gain of 5.8%. Read Next: Nikki Haley Slams Republicans Over $37 Trillion Debt: 'Our Kids And Grandkids Aren't Buying It' Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: Shutterstock AAPLApple Inc$233.101.50%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum46.16Growth29.32Quality74.94Value8.61Price TrendShortMediumLongOverviewHNHPFHon Hai Precision Industry Co Ltd$13.150.15%NVDANVIDIA Corp$181.28-1.03%Market News and Data brought to you by Benzinga APIs

Foxconn sees robust AI demand as second-quarter profit tops forecast

TAIPEI -- Foxconn on Thursday forecast a significant rise in third-quarter revenue as the world's biggest iPhone maker said it had for the first time made more money from its AI server business than from smart electronics last quarter. The company said artificial intelligence server revenue is expected to leap more than 170 per cent year-on-year in the coming quarter, though it also warned of uncertainty from U.S. tariffs. Nvidia's biggest server maker and Apple's top iPhone assembler has been riding a data center boom, as cloud computing firms such as Amazon, Microsoft and Alphabet's Google spend billions of dollars to expand their AI infrastructure and research capacity. Cloud and networking products, which include servers, accounted for 41 per cent of its revenue in the second quarter, while smart consumer products represented 35 per cent, the company said. The contribution from the server business to its revenue is set to grow further in the current quarter, as Foxconn expects a slight decline in smart consumer electronics revenue. Some experts expect iPhone sales to slow after they surged in the June quarter ahead of the expected imposition of U.S. tariffs. "AI has been the primary growth driver so far this year," Kathy Yang, rotating CEO of Foxconn, said on a call with media and analysts. She warned however that "close attention is needed due to the impact of changes in tariffs and exchange rates." The company said on Thursday its capital spending would rise more than 20 per cent this year, as it plans to boost server production capacity in its manufacturing sites in Texas and Wisconsin. Global trade uncertainty and particularly the trade spat between the U.S. and China could dim its outlook this year as it has a major manufacturing presence in China, though Washington and Beijing this week extended a tariff truce for another 90 days. Most of the iPhones Foxconn makes for Apple are assembled in China, but the bulk of those sold in the U.S. are now produced in India. The company is also building factories in Mexico and Texas to make AI servers for Nvidia. Foxconn has also been looking to expand its footprint in electric vehicles, which the company sees as a major future growth generator, though that has not always gone smoothly. Earlier this month, Foxconn said it had struck a deal to sell a former car factory at Lordstown, Ohio, for US$375 million that it purchased in 2022 to manufacture EVs. However, it will continue to occupy the facility. The company said the Ohio plant would be used to manufacture cloud-related products. The goal of manufacturing its Model C EV for the U.S. market remains unchanged, although initial production will take place in Taiwan, Foxconn said. A source familiar with the matter told Reuters that the plant was sold to its partner SoftBank. Foxconn and SoftBank declined to comment. Overall, the company reported net profit for the April-June period of T$44.4 billion ($1.48 billion), higher than the consensus estimate of T$38.8 billion compiled by LSEG. Foxconn, formally Hon Hai Precision Industry, last month reported record second-quarter revenue on strong demand for AI products, but cautioned over geopolitical and exchange rate headwinds. Its shares have risen 8.4 per cent so far this year, outperforming the broader Taiwan index's two per cent gain. They closed up 0.5 per cent on Thursday ahead of the earnings release.

AI demand expected to boost electronics giant Foxconn's second-quarter profit

TAIPEI (Reuters) -Taiwan's Foxconn, the world's largest contract electronics maker, is expected to report on Thursday that second-quarter profit rose 11% on continued strong demand for artificial intelligence servers. Net profit for April-June for Apple's top iPhone assembler and Nvidia's server maker likely came in at T$38.8 billion ($1.30 billion), up from T$35.05 billion a year earlier, according to LSEG's consensus estimate. Foxconn, formally called Hon Hai Precision Industry, last month reported record second-quarter revenue on strong demand for AI products but cautioned about geopolitical and exchange rate headwinds. Global trade uncertainty could dim the prospects for its outlook this year, as it has a major manufacturing presence in China, though Washington and Beijing this week extended a tariff truce for another 90 days. Most of the iPhones Foxconn makes for Apple are assembled in China, but the bulk of those sold in the United States are now produced in India. The company is also building factories in Mexico and Texas to make AI servers for Nvidia. In its July sales report, Foxconn said while the third quarter should see on-year growth - the company does not provide numerical guidance - the impact of "evolving global political and economic conditions" would need continued close monitoring. Foxconn has also been looking to expand its footprint in electric vehicles, which the company sees as a major future growth generator, though that has not always gone smoothly. Earlier this month, Foxconn said it had struck a deal to sell a former car factory at Lordstown, Ohio, for $375 million, including its machinery, but said it would continue to use the site to make a broader range of products aligned with its strategic priorities. Foxconn has expanded beyond its traditional role as an iPhone assembler in other areas too. Last month it formed a strategic partnership with industrial motor maker TECO Electric & Machinery to build data centres. Foxconn holds its earnings call at 3 p.m. (0700 GMT) in Taipei on Thursday, where it will also update its outlook for the year. Foxconn's shares have risen 7.9% so far this year, outperforming the broader Taiwan index's 5.8% gain. ($1 = 29.9420 Taiwan dollars) (Reporting by Wen-Yee Lee; Editing by Ben Blanchard and Sonali Paul)

Foxconn Profit Beats on Solid AI Hardware Sales

Foxconn Technology Group reported better-than-expected quarterly results as continued robust demand for AI-related hardware mitigated tariff and foreign-exchange risks. The world's largest contract electronics maker on Thursday said its second-quarter net profit rose 27% from a year earlier to 44.36 billion New Taiwan dollars, equivalent to US$1.48 billion. That beat the NT$37.83 billion expected in a Visible Alpha poll. The Taiwanese company, formally known as Hon Hai Precision Industry, said its quarterly revenue rose 16% to NT$1.793 trillion. The assembly of AI servers for U.S. tech giants such as Amazon and Nvidia has become a major focus for Foxconn as it diversifies its revenue streams. The company, a key Apple supplier, is also looking to grow its electric-vehicle business further. "Foxconn's dominant position enables the company to capture the opportunity to manufacture whatever the emerging tech products will be," Barclays analysts said in a recent note. Cloud and networking products--including AI servers--accounted for 41% of second-quarter revenue, making them Foxconn's biggest business segment, ahead of smart consumer electronics. AI servers are poised to continue driving Foxconn's top line in the current quarter, with the contract manufacturer projecting a more than 170% revenue gain from the products. Revenue from its consumer electronics business that includes smartphones was flattish in the second quarter as the launch of new entertainment devices mitigated the effects of unfavorable foreign-exchange rates. However, Foxconn lowered its full-year guidance for the business, expecting segment revenue to decline in the third quarter. The downgrade comes after the company in May cut its annual guidance, turning more cautious on the outlook amid U.S. tariff risks and a stronger Taiwanese dollar that would hurt its export earnings. Taiwan is now subject to a 20% so-called reciprocal tariff, less than the 32% threatened in April. However, President Trump has announced 100% tariffs on semiconductor imports, with exemptions for companies investing in the U.S. Foxconn could be a beneficiary of the latest rule, following Apple's new US$100 billion investment commitment to the U.S. Foxconn, for its part, has also committed to expand its U.S. presence. It plans to convert a former electric-truck factory in Lordstown, Ohio, into a plant making cloud computing hardware for AI applications, The Wall Street Journal reported earlier this month. Foxconn's stock has fluctuated as investors have navigated the tariff chaos and macro uncertainty. Shares in the company rose 10% in the second quarter after falling 21% in the first, bringing gains this year to around 8%.