Foxconn (Hon Hai Technology Group), one of the main suppliers to Apple, has revealed its financial result and main achievements during the second-quarter of 2024.
Foxconn’s revenue rose 19 percent to NT$1.55 trillion in the April-June quarter of 2024.
Gross profit of Foxconn grew 19 percent to NT$99.5 billion.
Operating profit of Foxconn increased 44 percent to NT$44.6 billion.
Net profit of Foxconn rose 6 percent to NT$35 billion.
Taiwan-based Foxconn, the world’s largest contract electronics maker, has achieved gross profit margin of 6.42 percent, operating profit margin of 2.88 percent and net profit margin of 2.26 percent.
Foxconn Chief Financial Officer David Huang said gross profit margin improved to 6.42 percent mainly due to product mix optimization and revenue increase.
For the first half, Foxconn’s revenue reached NT$2.875 trillion, up 4 percent from a year earlier. For the January-June period, Foxconn’s gross profit rose 7 percent to NT$183.2 billion, while operating profit grew 14 percent to NT$81.4 billion; and net profit grew 25 percent to NT$57.1 billion.
Foxconn Vice President James Wu said growth is expected in the third quarter for smart consumer electronics. Foxconn said Cloud and networking products will turn in significant growth, thanks to revenue momentum in AI servers. Foxconn said computing products should decline slightly due to a high base period, but still see significant growth year-on-year.
Foxconn said strong growth is expected in Q3 for components and other products, where shipments of components related to the core business have increased, including connectors, precision components, lens modules, and automotive products.
Strong customer demand drove AI server revenue in the second quarter up more than 60 percent on-quarter, and accounted for more than 40 percent of overall server revenue. Foxconn combines cloud and networking competencies to become the only supplier with comprehensive AI supply chain vertical integration capabilities that can provide customers with complete solutions.
Foxconn said strong demand for AI servers is expected to continue. AI servers will contribute to 40 percent of overall server revenue this year. Strong demand for new-generation AI rack solutions from different types of customers should make a significant contribution to Foxconn’s server revenue in 2025. AI servers should soon become Foxconn’s next trillion-dollar revenue product.
Foxconn also said the development schedule for AI semiconductor leader Nvidia’s GB200 chip was on track, adding product delivery will start in the fourth quarter in small volumes, which would rise in early 2025.
Foxconn also unveiled the first details of its annual technology conference, Hon Hai Tech Day 2024, which will take place over two days on October 8-9.
Baburajan Kizhakedath
