On December 5, 2024, Foxconn announced November sales of NT$672.59 billion ($20.7 billion), reflecting a 3.5% increase following an 8.6% rise in October. However, combined sales for October and November fell short of the anticipated 13% growth for the quarter, as reported by analysts.
The surge in artificial intelligence technology, particularly after the release of ChatGPT, has boosted revenue for AI hardware providers like Foxconn, which has benefited from significant investments in servers and data centers by major tech firms, including Meta Platforms Inc. and Google.
Despite these gains, investors express concerns over the long-term profitability of such investments, given the lack of a definitive AI application to drive further growth. Projections for Apple’s performance suggest limited expansion in the coming year.
During a recent earnings call, Foxconn executives forecast that by 2025, revenue from its cloud and AI server business will match that of its smartphone segment, which has historically relied on Apple for over half of its total sales.
The Taiwanese manufacturing sector faces potential challenges from U.S. trade policies, as President-elect Donald Trump’s administration may impose significant tariffs on Taiwanese manufacturers. This scenario recalls the previous administration's actions, prompting companies to diversify production locations.
In response, Foxconn has shifted some iPhone manufacturing to India, although China remains its primary operational base. Chairman Young Liu noted a recent $33 million investment in a Texas facility dedicated to manufacturing AI servers, suggesting that any tariffs imposed would likely impact competitors more than Foxconn.