Treasury Secretary Bessent announces tariff relief on coffee, fruits
Investing.com -- Taiwan’s Foxconn, the world’s largest contract electronics manufacturer, reported a 17% jump in third-quarter profit on Wednesday, exceeding forecasts as demand for AI servers continued to surge—a trend the company expects to sustain into next year.
Net income for the July–September period came in at T$57.67 billion ($1.89 billion), beating the T$50.4 billion average estimate compiled by LSEG. Revenue rose 11% from a year earlier to NT$2.059 trillion.
AI-related products remained the main growth engine. Cloud and networking equipment, including AI servers, accounted for 42% of total revenue—holding the top spot after overtaking smart consumer electronics last quarter.
The company said it anticipates strong year-on-year revenue growth in the fourth quarter, with AI server sales expected to rise further from the previous quarter.
For the full year, Foxconn reiterated expectations for significant revenue growth, in line with its August guidance, though it provided no specific figures, consistent with its practice of avoiding numerical forecasts.
Foxconn said cumulative AI server revenue had reached NT$1 trillion by the end of September, supported by ramped-up rack shipments and manufacturing advances.
The company, formally known as Hon Hai Precision Industry, has been expanding its role in the AI supply chain, producing servers for major U.S. technology companies such as Nvidia and Amazon, while continuing to serve as Apple’s primary iPhone assembler.
To strengthen its position, Foxconn’s board last month approved a NT$42 billion investment to acquire equipment for a new AI computing cluster and supercomputing center. Earlier this year, it announced a collaboration with Nvidia to develop a supercomputing facility in Taiwan powered by 10,000 Nvidia Blackwell chips.
Still, trade tensions remain a headwind. Taiwan faces a 20% reciprocal tariff, while President Trump has proposed a 100% tariff on semiconductors from countries that do not invest in U.S. production.