Suspense crime, Digital Desk : Citing the recent changes in U.S. tariff policy, Foxconn’s Chairman Young Liu remarked that the world’s largest contractor of electronics and Apple’s primary assembler of iPhones, lowered its estimate for 2025. Liu also pointed out the frequent fluctuation in trading rules as well as currency value severely hits international business.

Foxconn Expects Growth in the AI Server Sector

Despite reservations on the long-term picture, Foxconn expects major growth in the second quarter. The company noted that its AI server business for Nvidia is set to experience high double-digit growth year-on-year, with production volumes also increasing quickly.

Foxconn’s Q1 Earnings Exceed Expectations

The company reported an unaudited total profit for January to March of approximately T$42.12 billion (1.39 billion USD) marking a year-on-year increase of 91%. Revenues also underwent record growth due to sales driven by AI server expansion, improving Q1 revenue by 24.2%, outperforming projections.

Strategic Moves and Investments: Manufacturing Footprint

iPhones undergo the majority of their assembly in China, however, Foxconn is opening an AI server plant in Houston, Texas, with Nvidia that will expand Foxconn’s footprint in the U.S. Along with their new facility in Texas, Foxconn also has a new plant in Mexico which is strategically located to help navigate U.S. trade policies.

Market Response and Forecast

Due to tariff- issues, Foxconn’s shares have dropped 11.4% year-to-date. Despite this, there was a slight surge of 3.2% in share value before the earnings call. In the same duration of time, the overall Taiwan index sustained a 5.4% decline.

Read More: Foxconn Cuts Full-Year Outlook Amid U.S. Tariff Concerns, Highlights AI Server Growth