Taiwan’s Electronics Giant Breaks Records
Foxconn, the world’s largest contract electronics manufacturer and a key player in global tech supply chains, announced record-breaking fourth-quarter revenue for 2024. Boosted by surging demand for artificial intelligence (AI) servers, the company reported revenue of T$2.13 trillion ($64.72 billion), surpassing market expectations and setting an all-time high for the quarter.
The revenue jump of 15.2% year-on-year also exceeded the T$2.1 trillion estimate from LSEG SmartEstimate, which factors in the most reliable analyst forecasts.
AI Servers Drive Growth
The robust performance was driven largely by Foxconn’s cloud and networking products division, which saw strong growth due to increased demand for AI servers. Major customers, including AI chipmaker Nvidia, have fueled this expansion as AI applications become increasingly integral across industries.
“AI server demand continues to play a pivotal role in our growth trajectory,” Foxconn stated.
Mixed Results for Consumer Electronics
While the AI segment thrived, growth in Foxconn’s smart consumer electronics division, which includes assembling Apple’s iPhones, remained “roughly flattish” compared to the previous year. Despite steady performance in this segment, it was the booming AI market that propelled the company’s record revenue.
December Surge Caps a Strong Year
Foxconn’s December revenue alone hit T$654.8 billion, marking a 42.3% year-on-year increase and the second-highest level ever for the month. This exceptional finish underscores the company’s ability to capitalize on peak-season demand, particularly in its AI and cloud sectors.
2025 Outlook: A Seasonal Slowdown with Positive Growth
Looking ahead, Foxconn cautioned that its operations have entered the “traditional off-season” in the first quarter of 2025. However, it expects sequential performance in line with average levels over the past five years, with significant year-on-year growth projected.
The company did not provide specific numerical forecasts but reassured investors of stable operations as it transitions into the new year.
Foxconn Outperforms Taiwan’s Stock Market
Foxconn’s shares saw a remarkable 76% increase in 2024, significantly outpacing the broader Taiwan market’s 28.5% rise. This robust stock performance highlights investor confidence in the company’s strategic focus on high-growth sectors like AI.
Despite this strong showing, Foxconn’s shares closed down 0.8% on Friday ahead of the revenue announcement, compared to a modest 0.3% gain for Taiwan’s benchmark index.
Earnings Report to Follow in March
Investors and analysts are now eagerly awaiting Foxconn’s full fourth-quarter earnings report, scheduled for March 14. The results will offer deeper insights into the company’s profitability and performance across its various divisions, particularly as it navigates a complex global economic environment.
Conclusion: A Year Defined by AI Growth
Foxconn’s record-breaking fourth-quarter revenue underscores its pivotal role in the global technology landscape. The company’s ability to leverage AI-driven demand while maintaining stability in consumer electronics demonstrates its adaptability and foresight.
As the world increasingly embraces AI and cloud technologies, Foxconn’s strategic investments position it well for sustained growth. The forthcoming earnings report will be critical in assessing how the company plans to maintain its momentum in a competitive and evolving market.
