Foxconn Posts Record Q2 Revenue on AI Surge, Warns of These Risk Factors

Fueled by booming AI demand, Foxconn reports T$1.79 trillion in Q2 revenue — a 15.82% YoY jump — but flags risks from political tensions and currency volatility ahead.

July-5, 2025: Taipei – Taiwan-based tech giant Foxconn, also known as Hon Hai Precision Industry Co., reported a record-breaking second-quarter revenue of T$1.79 trillion, marking a 15.82% year-on-year increase, driven by surging demand for AI-enabled cloud and networking products.

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The world’s largest contract electronics manufacturer — and the primary assembler of Apple iPhones — outperformed market expectations by topping the LSEG SmartEstimate of T$1.7896 trillion. June alone brought in T$540.2 billion, a record high for the month with a 10.09% annual increase.

However, despite the strong numbers, Foxconn issued a cautionary note. The company flagged geopolitical instability, Trump-era tariff threats, and currency fluctuations as potential risks that could affect its performance in the coming months.

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📈 AI Demand Powers Growth

Foxconn attributed the robust revenue to rising global demand for AI-powered infrastructure, notably from top clients like Nvidia. The company’s cloud and networking segment saw sharp gains as enterprises worldwide ramped up investment in AI solutions.

In contrast, the consumer electronics segment, including iPhones, posted “flattish” growth compared to last year — a trend Foxconn attributed to foreign exchange headwinds.

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⚠️ Geopolitical and FX Concerns Ahead

In its statement, Foxconn acknowledged that “evolving global political and economic conditions and exchange rate changes” must be monitored closely in the upcoming quarters. This comes amid escalating trade tensions, with U.S. President Donald Trump announcing new tariff proposals targeting 12 countries, including those with heavy tech exports like China and India.

Foxconn operates the world’s largest iPhone production plant in Zhengzhou, China, placing it squarely at the center of any fallout from cross-border tariff conflicts.

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📊 Market Impact & Earnings Outlook

Foxconn’s share price rose 76% in 2024, far outpacing Taiwan’s broader market gains. However, shares are down 12.5% in 2025 so far, reflecting global uncertainty and pressure on tech stocks due to Trump’s trade stance.

On Friday, Foxconn shares closed 1.83% lower, ahead of the revenue announcement. The broader Taiwan benchmark index fell 0.73%.

Foxconn has not released a specific earnings forecast but said it expects quarterly growth to continue both sequentially and annually. Full Q2 earnings will be reported on August 14.

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🗂️ Tags:

Foxconn Q2 Earnings, AI Chip Demand, Taiwan Tech Stocks, Trump Tariff Policy, US China Trade War, Apple iPhone Manufacturing, Nvidia Supplier, Electronics Manufacturing, Global Supply Chain, Currency Fluctuations, Taiwan Stock Exchange