Hon Hai Precision Industry, formally known as Foxconn (TPE: 2317), has expressed strong conviction in its growth outlook, with Chairman Young Liu crediting surging artificial intelligence demand as the primary driver.
Liu made the remarks at the company’s annual shareholders meeting held in New Taipei, the city neighboring Taiwan’s capital, Taipei.
Foxconn holds the distinction of being both Nvidia’s biggest server maker and Apple’s top iPhone assembler, positioning it at the center of global AI infrastructure expansion.
The company this month reported a 19% rise in first-quarter profit compared to the same period a year earlier, beating analyst expectations on the back of robust worldwide demand for AI products.
Liu pointed to capital spending by major cloud service providers as a key indicator of the market opportunity available to Foxconn going forward.
He noted that combined capital expenditure by those providers has already surpassed $700 billion this year, with projections suggesting that figure could approach $1 trillion in the following year.
“Their capital expenditure is our market. It has already reached $700 billion, and their capital expenditure next year is expected to potentially reach $1 trillion. This gives us immense confidence in our future growth momentum,” Liu said.
Foxconn separately announced this month that it expects its own capital expenditures to grow by 30% this year, measured against last year’s T$174 billion, equivalent to approximately $5.55 billion, as it scales up manufacturing capacity for AI servers.
The company’s shares have climbed 19% so far this year, though that gain trails the broader Taiwan index, which has surged 54% over the same period.
Foxconn’s dual role supplying both the consumer electronics and AI infrastructure sectors places it among the most closely watched manufacturers as global technology spending continues to accelerate.
The company’s comments reflect a broader trend among major manufacturers that are increasingly tying their growth strategies to the expansion of AI-related hardware and data center infrastructure worldwide.
