Foxconn Sees 91% Profit Rise in Q1 on AI Demand, But Cautious About Year Ahead Due to Tariffs

Foxconn, the world’s largest electronics contract manufacturer, reported a substantial 91% increase in net profit for the first quarter of 2025, reaching T$42.12 billion (around $1.39 billion USD). This impressive growth was largely fueled by strong demand for AI servers, with Foxconn supplying major companies such as Apple and Nvidia.

Despite the positive financial performance, the company has adopted a more cautious outlook for the rest of the year. Foxconn has lowered its full-year forecast due to ongoing uncertainty related to U.S. tariffs and volatile currency exchange rates. Company Chairman Young Liu highlighted the unpredictability of global trade policies, noting that although the U.S. and China recently agreed to ease tariffs temporarily, long-term trade tensions still pose a risk to supply chains.

Foxconn’s manufacturing footprint in countries like China and Mexico makes it particularly sensitive to trade policy shifts. To reduce potential exposure to U.S.-China trade friction, the company is expanding its AI server production in Mexico. Additionally, Foxconn is pushing into the electric vehicle (EV) space, with its EV arm Foxtron recently securing a manufacturing deal with Mitsubishi and discussing a possible partnership with Nissan.

Looking ahead, Foxconn expects continued momentum in AI server demand through the second quarter of 2025. However, despite strong operational performance, its shares have declined by 11.4% this year, reflecting investor concerns over geopolitical and economic instability.

In summary, while Foxconn’s first-quarter earnings showcase its growing strength in the AI technology market, the company remains wary of external pressures like tariffs and currency shifts, which could impact its performance in the coming months.