Foxconn's Three-Year Growth Strategy: AI, EVs, and Potential Leadership Changes

Foxconn sees three-year growth driven by AI, EVs

Taiwan's Foxconn Technology Group expects robust growth over the next three years from artificial intelligence, information technology, and electric vehicles, with the world's largest contract electronics manufacturer expanding partnerships with Japanese automakers as it prepares for potential governance changes. AI and EVs fuel expansion strategy At the company's annual shareholder meeting on May 28, 2025, Chairman Young Liu outlined the three pillars driving expansion for the Apple Inc. supplier, which assembles most of the world's iPhones. The information and communication technology business will maintain steady performance while AI demand in edge computing and server applications creates significant momentum, Liu said. The electric vehicle segment represents the biggest growth opportunity as product launches advance and Foxconn's customer base expands. Beyond an existing partnership with Mitsubishi Motors Corp., negotiations with a second Japanese automaker are nearing completion with an announcement expected soon, according to Liu. The company is also exploring partnerships with third and fourth automakers. Platform strategy mirrors electronics model Foxconn's electric vehicle strategy focuses on common platform elements that allow automaker partners to customize vehicles while sharing underlying architecture. The approach mirrors its electronics manufacturing model, where reference designs reduce development time and costs for customers by up to 80%. The company plans United States market entry by end-2025, though Liu cautioned that tariff conditions and production complexities at American facilities require close monitoring amid evolving trade policies. Leadership changes on the horizon On corporate governance, Foxconn may separate its chairman and chief executive roles within three years following shareholder pressure. The company implemented a rotating chief executive officer system in April 2024 to prepare senior executives for potential leadership changes, with one-year terms designed to broaden management experience across the group's operations. The rotating chief executive officer position, currently held by Chung-cheng Lin from the Electronic Business Group, will transfer to Kathy Yang on March 31, 2025. Yang, who joined Foxconn in 2007, leads Jusda Supply Chain Global. Despite global economic uncertainties, Liu expressed confidence in the company's three-year growth prospects, citing strong positioning across key technology sectors and expanding manufacturing footprint.

Foxconn Reassures Shareholders Amid Cloudy Outlook

Foxconn Technology Group, the world's largest contract electronics maker, said its revenue this year would beat last year's, boosting shareholders' confidence after it downgraded its outlook earlier this month. Foxconn Chairman Young Liu said at the company's annual shareholders conference on Thursday that 2025 revenue is expected to be over 7 trillion New Taiwan dollars, equivalent to $234 billion, as robust AI server demand continues to support its growth. In comparison, revenue in 2024 was NT$6.86 trillion. Foxconn lowered its 2025 outlook to earlier this month, when it said it now had a more conservative outlook compared with its expectations in March. It cited fast-changing U.S. tariff policies, their disruptive effects on global supply chains, and foreign-exchange headwinds. Foxconn, best known for assembling Apple's iPhones, has been diversifying its businesses, growing its footprint in areas like artificial-intelligence servers and electric vehicles in recent years. The Taiwan-based company now plays an increasingly important role in building AI servers for U.S. tech giants such as Amazon and Nvidia. Cloud and networking products--including AI servers--accounted for 34% of first-quarter revenue, making them Foxconn's second-largest business segment after smart consumer electronics at 40%. Nvidia reported another set of robust results on Wednesday, beating market expectations despite restrictions on chip exports to China. "This is a very important print and guide for the broader tech world and it shows the AI Revolution is heading into its next gear of growth despite the Trump tariff war playing out," Wedbush analysts said in a research note. Turning to its EV business, Liu said Foxconn will soon unveil a partnership with another Japanese automaker, after announcing its collaboration with Mitsubishi Motors earlier this month. Mitsubishi plans to sell an electric vehicle developed by a Foxconn unit in the second half of 2026. The company has expressed interest in teaming up with Nissan Motor after the Japanese automaker ended talks to merge with Honda Motor earlier this year. Foxconn's shares ended 2.6% higher in Taiwan, outpacing the benchmark Taiex's 0.2% gain.