<p>The firm has declared ambitions to move beyond electronics assembly, investing significantly to be part of the AI technology market to transition into a "comprehensive situations platform provider".</p>
The agency has declared ambitions to maneuver past electronics meeting, investing considerably to be a part of the AI know-how market to transition right into a “complete conditions platform supplier”.

Taiwanese tech large Foxconn on Tuesday reported a 72% bounce in web revenue throughout the first three months of 2024 as demand for synthetic intelligence know-how grows.

The agency — additionally recognized by its official title Hon Hai Precision Business — is the world’s largest contract electronics producer and assembles units for a number of firms, most notably Apple’s iPhones.

It stated web revenue for January-March rose to USD 679 million from USD 396 million in the identical interval final 12 months.

Whereas the enhance is the third consecutive quarter of revenue development, it’s nonetheless under expectations, and Foxconn spokesperson James Wu sought to color an upbeat image throughout Tuesday’s earnings name.

“We anticipate that the robust demand for AI servers will carry a brand new big market, which is why we’re optimistic about this trade,” he stated.

He added that “Hon Hai is sort of the one producer that may develop each key part by itself, from modules, fundamental servers, high-speed community switches, to information centres”.

Foxconn’s management additionally launched a press release proper earlier than the earnings name to reaffirm its dedication to Japanese electronics maker Sharp, during which the Taiwanese agency holds the most important stake of greater than 30%.

Its low base in 2023 was attributed to the losses of Sharp, in response to feedback made throughout the name.

“(Sharp) listed asset impairment… which affected Foxconn’s non-operational and web revenue performances within the first quarter,” stated Wu.

However “the worst is behind Sharp”, he added. “Its future solely will get higher from right here.”

The corporate stated Sharp can be remodeling its Sakai manufacturing facility into an “AI information centre”, with no additional particulars about what that might entail.

Wu stated Foxconn supposed to collaborate extra with the Japanese agency “within the areas of good merchandise for folks, automobiles, residence and workplace… to grab new alternatives within the AI server know-how revolution”.

Foxconn had prior to now credited its regular efficiency development to robust demand for generative AI, a know-how that has seen a surge in demand lately.

The agency has declared ambitions to maneuver past electronics meeting, investing considerably to be a part of the AI know-how market to transition right into a “complete conditions platform supplier”.

Most notably, Foxconn introduced final October it will group up with US chip large Nvidia to create “AI factories” — highly effective data-processing centres that might drive the manufacturing of next-generation merchandise.

The majority of Foxconn’s operations are based mostly in China, and it’s the nation’s largest private-sector employer with greater than 1,000,000 employees.

However it’s seeking to diversify its manufacturing provide chain after manufacturing was impacted by three years of strict Covid insurance policies, a bout of business unrest and diplomatic tensions with the USA.

Foxconn stated in November it was planning an extra USD 1.54 billion funding in India for “operational wants”, after saying the acquisition of an enormous tract of land on the outskirts of tech hub Bengaluru final 12 months.

  • Printed On Might 14, 2024 at 03:37 PM IST

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