Foxconn has reported its financial results for the first quarter of 2025, showcasing record-breaking revenue and significant profit growth.
Taiwan-based Foxconn posted a revenue of NT$1.6443 trillion, representing a 24 percent year-over-year increase. The net profit reached NT$42.1 billion, a remarkable 91 percent surge from the same period last year, driven by robust demand in AI servers and networking products.
Strategic Focus: AI and Regional Manufacturing
Foxconn has identified AI as the defining theme of 2025, with the AI server business delivering over 50 percent revenue growth in Q1. Foxconn Chairman Young Liu, in the earnings report, has emphasized that AI servers are expected to maintain strong momentum throughout the year, potentially doubling in revenue in the second quarter. This focus aligns with Foxconn’s strategy of leveraging advanced automation and expanding production capabilities.
Foxconn, Apple’s top iPhone assembler and Nvidia’s AI server maker, has implemented a regional manufacturing strategy in response to ongoing geopolitical tensions and trade policy uncertainties. The company operates 233 sites across 24 countries, including over 50 sites in the Americas and more than 10 each in Europe and India. This geographic diversification allows Foxconn to mitigate supply chain risks and respond swiftly to local market demands.
Customer-Centric Approach and Product Diversification
Foxconn continues to deepen its customer relationships through strategic partnerships. Notably, the company is collaborating with Mitsubishi Motors to design and develop electric vehicle (EV) models for the Oceania market. This milestone aligns with Foxconn’s ambition to expand its EV business and secure orders from traditional automakers. Additionally, the Kaohsiung Ho Fa plant has begun mass production of batteries for electric buses and commercial vehicles, reinforcing the company’s commitment to localizing EV production.
Investment in Semiconductors and Aerospace Expansion
Foxconn is also making strategic investments in semiconductors. The company is preparing to produce SiC MOSFET technology, which promises enhanced power conversion efficiency. The acquisition of the Fukuyama wafer plant in Japan expands Foxconn’s semiconductor capabilities. Foxconn subsidiary Foxsemicon Integrated Technology plans to enter the aerospace and drone markets by acquiring FairTech Corp.
Financial Outlook and Considerations
Despite achieving significant growth in Q1, Foxconn is adjusting its full-year outlook to ‘significant growth’ due to exchange rate fluctuations affecting revenue conversion to New Taiwan dollars. However, the revenue outlook in US dollars remains unchanged, reflecting confidence in key business segments, particularly AI servers and networking products.
TelecomLead.com News Desk
