Foxconn, the world’s largest contract electronics manufacturer, has downgraded its outlook for 2025, pointing to currency headwinds and potential trade disruptions even as its artificial intelligence server segment continues to perform well.
Chairman Young Liu indicated the company has adopted a more conservative view compared to its March projections, citing the appreciation of the Taiwanese dollar and growing uncertainties surrounding global tariffs as primary concerns.
The Apple Inc. supplier’s caution comes at a time when technology companies worldwide are navigating complex trade tensions, particularly between the United States and China, which have led to unpredictable tariff environments affecting global supply chains.
While Foxconn, formally known as Hon Hai Precision Industry Co., hasn’t disclosed specific revised targets, the modified outlook suggests potential challenges for Taiwan’s technology sector, which has been a significant beneficiary of the AI boom.
The company’s AI server business remains a bright spot amid the tempered expectations, reflecting the continued global demand for data center infrastructure supporting generative AI applications.
Analysts will likely watch closely for any quantitative guidance in Foxconn’s upcoming financial disclosures, as the company’s performance often serves as a bellwether for broader technology manufacturing trends.
