Taiwan’s Foxconn reports 35 percent rise in profit on AI demand

What the report says

Taiwan’s Foxconn, the world’s largest contract electronics maker, reported a stronger-than-expected second-quarter profit as demand for artificial intelligence servers continued to rise. Al Jazeera, citing AFP and Reuters, said the company’s net income increased 35 percent year on year to NT$59.97 billion, or about $1.86 billion, for the April-June period. That result came in above analysts’ expectations in a Bloomberg survey.

The company said AI infrastructure was driving growth and kept its earlier outlook for “strong” revenue growth this year. Foxconn, also known as Hon Hai Precision Industry, is Nvidia’s biggest server maker and Apple’s top iPhone assembler. Its earnings update adds to evidence that major technology firms and governments are spending heavily on data centres and related hardware to support AI tools such as chatbots and image generators.

The article also noted that Foxconn has benefited from this trend through its server business, while continuing to adapt its manufacturing footprint. Most iPhones it makes for Apple are assembled in China, though the company now produces most US-bound iPhones in India. It is also expanding facilities in Mexico and Texas to make AI servers for Nvidia.

Al Jazeera reported that Foxconn’s shares rose 2.7 percent on Wednesday before the earnings release, and that the stock has gained this year, though it has lagged Taiwan’s broader market. The update matters because Foxconn is a key supplier in global consumer electronics and AI hardware supply chains.