TAIPEI (AFP) – Tech giant Foxconn Tuesday reported a 72-per-cent jump in net profit during the first three months of 2024 as demand for artificial intelligence (AI) technology grows.
The firm – also known by its official name Hon Hai Precision Industry – is the world’s largest contract electronics manufacturer and assembles devices for several companies, most notably Apple’s iPhones.
It said net profit for January-March rose to USD679 million from USD396 million in the same period last year.
While the boost is the third consecutive quarter of profit growth, it is still below expectations, and Foxconn spokesperson James Wu sought to paint an upbeat picture during Tuesday’s earnings call.
“We expect that the strong demand for AI servers will bring a new huge market, which is why we are optimistic about this industry,” he said.
He added that “Hon Hai is almost the only manufacturer that can develop every key component by itself, from modules, basic servers, high-speed network switches, to data centres”. Foxconn’s leadership also released a statement right before the earnings call to reaffirm its commitment to Japanese electronics maker Sharp, in which the firm holds the largest stake of more than 30 per cent.
Its low base in 2023 was attributed to the losses of Sharp, according to comments made during the call.
“(Sharp) listed asset impairment… which affected Foxconn’s non-operational and net profit performances in the first quarter,” said Wu.
But “the worst is behind Sharp”, he added. “Its future only gets better from here.”
The company said Sharp would be transforming its Sakai factory into an “AI data centre”, with no details about what that would entail.
Foxconn had in the past credited its steady performance growth to strong demand for generative AI, a technology that has seen a surge in demand in recent years.
