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August 15, 2023: On Monday, Foxconn, which sees a growing E.V. contract manufacturing market, expressed it would likely mass deliver E.V. batteries but maintained a guarded view due to international financial tensions.
The world’s biggest contract electronics engineer devalued its outlook for complete-year returns to a small decrease from previous guidance of flat as it joins different communities grappling with a weak global economy and a slow comeback in China.
“At present, there are many exterior variables, international monetary policy tightening, geopolitical tensions, inflation, and other uncertainties,” Chairman Liu Young-way stated, meaning Foxconn’s outlook is “relatively cautious.”
Liu told an earnings briefing he witnesses a lot of potential in India, where Foxconn has rapidly expanded its manufacturing facilities, adding: “Several billion dollars in asset is a beginning.”
Last month, Foxconn pulled out of a joint venture with Vedanta to make semiconductors in India but said it intended to involve incentives under the government’s chip show plan.
Foxconn has made E.V a big part of its diversification plans and has hired a quit Nissan executive, Jun Seki, to lead its E.V. business expansion.
Within the A.I. server supply chain, Foxconn has won a “very high” market share for GPU modules and substrates, Liu stated.
As generative A.I. applications explode, Foxconn is acquiring momentum in servers for this part and believes it can deepen collaboration with North American customers, Liu added, showing a bright spot amid slower demand for smartphones and PCs.
“A.I. growth has been strong, but we have not seen any pick-up for other products.”
Earlier, Foxconn posted a 1% drop in second-quarter net profit that beat analyst expectations.
The Taiwanese firm stated net profit for the April-June quarter slipped to T$33 billion from a set T$33.29 billion in the same period the previous year.
It was better than an average forecastT$25.57 billion profit prediction from 13 analysts.
Foxconn said it anticipated returns for its intelligent consumer electronics products to decline every year in the third quarter barely. That group comprises smartphones, which account for half of Foxconn’s total earnings.
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