Foxconn Chairman Sees Strong Growth on High AI Demand
Foxconn Chairman Young Liu expressed significant confidence in the company's growth outlook during an annual shareholders meeting, citing increased capital expenditure from cloud providers. The firm expects its own capital expenditure to rise 30% this year as it expands manufacturing capacity for AI servers.
HON HAI PRECISION INDUSTRY expects growth momentum through the second half of 2026 as surging AI demand eliminates traditional seasonal slumps. The world's largest contract electronics manufacturer projects continued strong performance unless a severe black swan event occurs. This optimism follows a 19% rise in first-quarter profit, driven by its role as a primary server maker for NVIDIA CORP.
### Cloud Spending Fuels Server Demand Chairman Young Liu told shareholders in New Taipei on Friday that major cloud service providers have invested over $700 billion this year. The traditional mid-year seasonal slump for tech suppliers no longer happens, Liu said. He expects cloud capital expenditure to reach $1 trillion next year, directly expanding the market for Hon Hai's AI infrastructure.
