Fuelled by soaring AI demand, Foxconn hits record Q4 revenue of NT$2.132 trillion, with growth expected to continue this year, despite looming economic challenges.
Foxconn, one of the world’s prominent electronics contract manufacturers, posted record revenue for the fourth quarter of 2024, reporting a 15% year-on-year (YoY) increase, driven by heightened demand for AI servers. The Taiwanese firm, formally Hon Hai Precision Industry, reached NT$2.132 trillion (US$64.75 billion), surpassing analyst forecasts. This also marked the highest fourth-quarter revenue in the company’s history.
According to a report by EPSNews, the key factor behind Foxconn’s success is the growing global demand for AI technology, which is revolutionising sectors such as healthcare and finance.
The company also recorded a significant 42% rise in December sales, totalling NT$654.83 billion (US$19.89 billion), exceeding expectations. This surge was also attributed to strong demand for AI servers, new computing products, and the expanding cloud computing business, a critical component of AI infrastructure.
Looking ahead, Foxconn expects continued growth in the first quarter of 2025, despite potential challenges.
These challenges include global economic uncertainties, including inflation and slowdowns in key markets, could affect consumer electronics spending. Additionally, increasing competition in the AI hardware sector may impact margins.
However, according to the company’s press release, Foxconn remains optimistic and predicts that first-quarter sales will show “significant growth” compared to the same period last year, despite entering the traditional off-season.
The company is also investing in new technologies such as electric vehicles and robotics to diversify its portfolio and reduce reliance on smartphone assembly. Foxconn’s partnerships with major companies like Apple and Nvidia, combined with its focus on innovation, position it well to weather potential economic challenges.
Foxconn’s full fourth-quarter earnings report, due in mid-March, will provide further insights into the company’s financial performance and future strategy.
