NEW TAIPEI, Taiwan, May 29 (Reuters) – Taiwan’s Foxconn, the world’s largest contract electronics manufacturer, has immense confidence in its growth momentum because \u200cof soaring AI demand, Chairman Young Liu said on Friday.<\/p>\n
The traditional \u200cmid-year seasonal slump for tech suppliers no longer happens, Liu told an annual shareholders meeting \u200bin New Taipei, adding that he was very optimistic about the second half of the year.<\/p>\n
“Unless a highly severe ‘black swan’ event occurs – which I haven’t seen, and there are currently no signs of – based on what we see now, \u200cthe second half of the \u2060year looks very good.”<\/p>\n
He noted colossal investment in AI by major cloud service providers that has exceeded $700 billion this \u2060year.<\/p>\n
“Their capital expenditure is our market. It has already reached $700 billion, and their capital expenditure next year is expected to potentially reach $1 trillion. This gives us immense \u200bconfidence in \u200bour future growth momentum,” he said.<\/p>\n
Foxconn, \u200bwhich is Nvidia<\/a>‘s biggest server maker \u200cand Apple<\/a>‘s top iPhone assembler, this month reported a forecast-beating 19% rise in first-quarter profit.<\/p>\n Asked about the impact of the global shortage of memory chips, Liu said some of Foxconn’s high-end customers had been affected but not in a significant way.<\/p>\n “If the high-end market is impacted, the entire world will \u200cfeel it, and we hope that doesn’t \u200bhappen. So for us, the current situation is \u200bthat the impact on our \u200bclients through the end of the year is limited,” \u200che said.<\/p>\n The company, formally called Hon Hai \u200bPrecision Industry, said \u200bthis month it expects its capital expenditure to grow 30% this year from last year’s T$174 billion ($5.6 billion) as it expands manufacturing capacity \u200bfor AI servers.<\/p>\n The company’s \u200cshares have risen 19% so far this year, underperforming the broader \u200bTaiwan index’s 54% gain.<\/p>\n ($1 = 31.3720 Taiwan dollars)<\/p>\n (Reporting by Ben Blanchard; Editing \u200bby Jamie Freed and Edwina Gibbs)<\/p>\n","protected":false},"excerpt":{"rendered":"NEW TAIPEI, Taiwan, May 29 (Reuters) – Taiwan’s Foxconn, the world’s largest contract electronics manufacturer, has immense confidence…\n","protected":false},"author":2,"featured_media":508042,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[261],"tags":[291,220387,289,290,15436,27484,220386,18,60075,19,17,82,106811],"class_list":["post-508041","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-annual-shareholders-meeting","tag-artificial-intelligence","tag-artificialintelligence","tag-capital-expenditure","tag-confidence","tag-contract-electronics-manufacturer","tag-eire","tag-foxconn","tag-ie","tag-ireland","tag-technology","tag-young-liu"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/116655780289713958","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/508041","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=508041"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/508041\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/508042"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=508041"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=508041"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=508041"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}