Foxconn Reports Record Q2 Revenue Amid Booming AI Demand, Warns of Global Risks

TAIPEI (Reuters) – Taiwanese tech giant Foxconn, the world’s largest contract electronics manufacturer, announced record-breaking revenue for the second quarter of 2025, driven by surging demand for artificial intelligence (AI) products. However, the company also warned of risks posed by global geopolitical tensions and currency fluctuations.

Foxconn, the top assembler for Apple’s iPhones, reported a 15.82% year-on-year increase in revenue, reaching T$1.797 trillion in Q2. The result surpassed market expectations, beating the T$1.7896 trillion estimate from LSEG SmartEstimate, which emphasizes predictions from consistently accurate analysts.

The company attributed much of its revenue boost to its cloud and networking division, fueled by strong demand for AI-related products. Foxconn is a key supplier for major players like Nvidia, a leader in AI chip technology.

Meanwhile, its smart consumer electronics segment — which includes iPhones — saw relatively flat revenue growth compared to last year, with exchange rate fluctuations affecting performance.

For the month of June alone, Foxconn reported revenue of T$540.237 billion — a 10.09% year-on-year increase and the highest ever for that month.

Looking ahead, Foxconn anticipates growth in the third quarter, both over the previous quarter and compared to the same period in 2024. Still, the company urged caution, pointing to ongoing global uncertainties.

“The impact of evolving global political and economic conditions, as well as exchange rate volatility, requires continued close observation,” Foxconn said in its statement, without providing further detail.

The warning comes amid growing trade tensions, with U.S. President Donald Trump announcing plans to issue tariff proposals to 12 countries. These developments could have implications for international supply chains, particularly in China, where Foxconn operates the world’s largest iPhone production site in Zhengzhou.

Now known officially as Hon Hai Precision Industry Co. Ltd., Foxconn does not release detailed financial forecasts. Its full second-quarter earnings are scheduled for release on August 14.

Despite a stellar 76% stock surge in 2024, far outpacing Taiwan’s broader market rise of 28.5%, Foxconn’s shares have dipped 12.5% so far in 2025. The decline reflects wider investor concerns over global tech instability and trade uncertainty. The company’s stock fell 1.83% on Friday, just before the revenue announcement, compared to a 0.73% decline in the benchmark index.

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