Foxconn Q1 Revenue Up 24.2%, Eyes Global Risks

Recently, Foxconn has announced its financial results for the first quarter of 2025, reporting a record-breaking revenue of NT$1.64 trillion—an impressive 24.2% year-on-year increase. This marks the company's highest Q1 performance in its history. In March alone, revenue rose by 23.37% year-on-year, reaching NT$552.125 billion.

This surge is largely attributed to the booming demand for AI-powered products, highlighting Foxconn's growing role in the global artificial intelligence hardware ecosystem.

Given Foxconn's pivotal role in the tech manufacturing landscape, especially within the Apple production chain, its strategies in response to international trade tensions—particularly the U.S.-China tariff disputes—have garnered significant attention.

Addressing concerns about tariffs, Foxconn Chairman Young Liu commented that for a global manufacturer like Foxconn, "manufacturing here or there makes little difference." The greater concern, he noted, lies in whether prolonged tariff measures could impact overall economic stability.

Currently, Foxconn's primary AI server manufacturing hubs are located in Mexico, the U.S., Taiwan, and Vietnam. Notably, Mexico remains unaffected by certain reciprocal tariffs proposed by former U.S. President Donald Trump, although specific industries such as steel, aluminum, and automotive still face a 25% tariff. This has helped alleviate production pressure for Foxconn's AI servers made in Mexico. Whether Foxconn will expand its AI server capacity in Mexico to further mitigate potential tariff impacts remains a key area to watch.

Looking ahead to the second quarter of 2025, Foxconn anticipates continued growth in cloud and networking products. However, the company also notes the seasonal slowdown typical of Q2, along with product transitions between old and new generations. Based on current market visibility, Foxconn expects both quarter-over-quarter and year-over-year revenue growth, while remaining cautious about potential shifts in the global political and economic environment.