Taiwan’s Foxconn forecasts strong growth in its artificial intelligence (AI) server business for 2024, with plans to increase investments across several countries due to rising U.S.-China trade tensions.
U.S. President-elect Donald Trump’s proposed tariffs — 10 percent on all U.S. imports and 60 percent on Chinese goods — could impact Foxconn’s operations, particularly at its Apple iPhone assembly plant in Zhengzhou, China, which serves major client Apple.
To mitigate risks, Foxconn has been expanding production, notably in India, and announced further investments in the U.S., Mexico, and Vietnam.
Foxconn’s plants in Wisconsin and Texas show steady growth in AI server sales, with Foxconn Chairman Young Liu optimistic about continued U.S. demand.
As a major supplier to Nvidia, Foxconn is tapping into high demand for Nvidia’s GB series servers, aiming for a 40 percent share of the global AI server market. AI servers are expected to constitute 50 percent of Foxconn’s server revenue by 2024.
Foxconn is constructing a major manufacturing facility in Mexico for Nvidia’s GB200 superchips. Meanwhile, the company’s October sales set a new monthly record, with anticipated revenue growth in Q4.
Foxconn’s net profit for the July-September period was T$49.3 billion ($1.5 billion), according to Reuters calculations, as sales jumped 20 percent to a record on strong sales of AI servers.
