Foxconn, the world’s largest contract electronics manufacturer, has revised its full-year 2025 outlook downward, citing the strengthening Taiwan dollar and rising uncertainty over U.S. tariffs. Despite continued strong demand for AI servers, Chairman Young Liu said the company is taking a more cautious stance than its previous forecast of significant growth.
Liu attributed the revision to the currency’s appreciation, which impacts revenue when converted back to Taiwan dollars. The speculation that Taiwan allowed the dollar’s rise under U.S. pressure has been denied by Taipei, but the fluctuation still led Foxconn to temper its expectations.
U.S. tariff volatility has also created global supply chain challenges. Though the U.S. and China recently agreed to a 90-day tariff truce, the broader outlook remains clouded. Most iPhones for Apple are assembled in China, while Foxconn is also expanding AI server production in Mexico—both key locations under the scrutiny of U.S. trade policy.
Still, Foxconn posted robust Q1 results, with net profit surging 91% year-on-year to T$42.12 billion ($1.39 billion), well above analyst expectations. Revenue climbed 24.2%—a record for Q1—driven by high double-digit growth in AI server demand. The company expects continued strong performance into Q2.
Foxconn is also expanding into electric vehicles. Its subsidiary Foxtron Vehicle Technologies signed a supply MOU with Mitsubishi Motors and is in discussions with Japanese automakers like Nissan, although no formal agreements have been announced.
Foxconn shares are down 11.4% year-to-date, underperforming Taiwan’s broader market amid ongoing trade tensions.
Source: Swifteradio.com
