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Foxconn, the world’s largest contract electronics manufacturer, posted strong revenue growth in the third quarter of this year, driven by unprecedented demand for artificial intelligence (AI) technology.
According to the Taiwanese technology giant, revenue rose 47 per cent year on year to NT$3.03 trillion (about $95.4 billion) in the July-September quarter.
The growth exceeded market expectations, largely due to exceptionally strong demand for AI servers and related infrastructure equipment.
According to Reuters, Foxconn’s revenue in September alone rose 38 per cent from a year earlier to NT$1.16 trillion.
It was the first time in the company’s history that monthly revenue exceeded NT$1 trillion.
Strong sales of cloud and networking products, along with robust demand for consumer electronics, including Apple’s new iPhones, contributed significantly to the record performance.
The company’s official name is Hon Hai Precision Industry, although it is widely known globally as Foxconn.
Foxconn expects strong demand for AI-related products to continue into the fourth quarter.
The company also expects overall performance in the final quarter to remain in line with expectations, supported by the traditional seasonal strength in electronics purchases during the second half of the year.
However, Foxconn cautioned that geopolitical instability and fluctuations in the global economy remain risks that need to be closely monitored.
The company is scheduled to release its full and final financial results for the quarter on November 12.