Foxconn (Hon Hai Precision Industry), the main supplier of AI servers for Nvidia and Apple’s main partner in assembling iPhones, reported on Saturday a 24.2% increase in revenue in the first quarter of 2025 to NT$1.64 trillion ($49.8 billion), compared with analysts’ forecast of NT$1.65 trillion. The company managed to achieve such success largely due to high demand for equipment for AI data centers.
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As Bloomberg noted, the Taiwanese contract electronics maker’s sales have been growing at a rapid pace since 2022. Foxconn said in a statement that it expects its cloud and networking segment to continue growing at a rapid pace in the second quarter, and that it forecasts overall sales to grow “based on the current situation.” However, the company noted that it will need to closely monitor the impact of changing global political and economic conditions.
Foxconn ships electronics around the world from factories in China and Vietnam, and the Trump administration’s hike in tariffs on products shipped to the U.S. will hit its finances directly. Shortly before Trump was elected, Hon Hai announced it would build its largest AI server factory in Guadalajara, Mexico, which, as it turns out, was not the best idea.
Trump’s tariffs on U.S. imports will disproportionately hurt Apple’s smartphone business given its reliance on China, CreditSights analysts wrote. They said Apple’s manufacturing operations in Vietnam and India have not provided much relief. “Hardware makers will be directly impacted, particularly those selling smartphones, PCs, and servers,” CreditSights said. The analysts estimate the tariffs will cost the global tech sector nearly $100 billion this year.
Foxconn Chairman Young Liu said last month that the company was exploring expanding production in several U.S. states. Earlier this year, Apple said it was in discussions with Foxconn to start making servers in Houston. Other Taiwanese electronics makers are also following Foxconn’s lead, Bloomberg reports.