Foxconn sales hit record high in second quarter on AI Demand

Taipei [Taiwan], July 7 (ANI): Hon Hai Precision Industry Co. reported record-high second-quarter sales driven by a surge in global demand for artificial intelligence servers. The Taiwan-based electronics manufacturing giant, widely known as Foxconn, experienced significant growth across its core operational divisions during the April to June period.
According to a news report by Focus Taiwan, the company generated NT$2.51 trillion (USD 78.35 billion) in consolidated sales for Q2. This figure represents a 39.83 per cent increase compared to the same period last year and an 18.02 per cent growth from the preceding quarter.
In a statement detailing the performance, Hon Hai said its cloud and networking division benefited from high demand for AI products, recording strong year-on-year sales growth in the second quarter.
The manufacturer, which acts as a primary assembler for Apple Inc.'s iPhone, noted that its expansion extended beyond AI infrastructure. Its electronic components, computing, and smart consumer electronics divisions also reported significant revenue growth in the second quarter.
As per the news report, for the month of June alone, the company registered consolidated sales of NT$821.8 billion (USD 27.1 billion), marking a 52.11 per cent jump from the previous year, though it reflected a 4.38 per cent decline from May.
The company's cumulative sales for the first half of the year reached NT$4.64 trillion (USD 153.1 billion), an increase of 34.99 per cent year-on-year. Hon Hai currently commands an estimated 40 per cent share of the global AI server market.
Looking forward to the next operational period, Hon Hai said Sunday that its third-quarter sales are likely to also show quarterly and year-on-year growth, as global demand for AI server racks is expected to remain solid during that period.
The company added that the second half of the year is usually the peak season for the information and communications technology industry, which will help drive Hon Hai's third-quarter sales growth.
As per the news report, in contrast to the growth at Foxconn, smartphone component supplier Largan Precision Co. recorded a sequential dip in its financial results. The smartphone camera lens manufacturer posted second-quarter consolidated sales of NT$13.67 billion (USD 451 million), which represents a 12.09 per cent drop from the first quarter.
Largan noted that its June sales decreased to NT$3.71 billion (USD 122.4 million), marking a 10.46 per cent decline from last year. The company stated that the drop was due to its clients' decisions to reschedule shipments.
Despite the monthly contraction, the news report mentioned that Largan's consolidated sales for the first half of the year rose 11.26 per cent from a year earlier to NT$29.21 billion (USD 964 million). (ANI)