Taiwan’s Foxconn, the world’s largest contract electronics maker, reported its highest-ever revenue for the third quarter, surpassing expectations due to strong demand for AI servers. Revenue for Apple’s biggest iPhone assembler increased by 20.2% year on year to T$1.85 trillion ($57.3 billion).
In a statement on Saturday, Foxconn stated that the results exceeded the company’s initial expectations of significant growth and also surpassed the T$1.79 trillion LSEG SmartEstimate. The strong demand for AI servers contributed to robust revenue growth for its cloud and networking products division, with customers including AI chip firm Nvidia.
While there was a strong quarter-on-quarter growth for smart consumer electronics, including iPhones, the year-on-year performance remained flat. The third quarter is typically when Taiwan’s tech companies gear up to supply smartphones, tablets, and other electronics to major vendors for the year-end holiday season in Western markets.
Revenue in September alone reached T$733 billion, marking a 10.9% increase year on year and the second-highest level ever for the month. Looking ahead, Foxconn anticipates its operations to gradually gain momentum in the peak season of the second half of the year, with the fourth quarter expected to be in line with current market expectations.
Foxconn does not provide numerical forecasts but has seen its shares rise by 86% so far this year, outperforming the broader Taiwan market. The company will release its full third-quarter earnings on Nov. 14 and has scheduled its annual Tech Day on Oct. 8-9, where new products or partnerships are usually announced.
($1 = 32.2900 Taiwan dollars)