Taiwan’s Foxconn bullish on outlook but warns about supply chain tightness

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Foxconn bullish on 2027 outlook as AI demand lifts profit, but the Taiwan firm warns supply chain tightness may persist. Read more at straitstimes.com.

Foxconn has also been building factories in Mexico and Texas to make AI servers for Nvidia.

TAIPEI – Taiwan’s Foxconn, the world’s largest contract electronics maker, said on Nov 12 it was confident about its business in 2027 given strong AI demand as it reported forecast-beating quarterly profit, but it warned about supply chain tightness.

Net profit for the July to September period for Nvidia’s biggest server maker and Apple’s top iPhone assembler was NT$77.5 billion (S$3.02 billion), up 34% on year and beating an LSEG consensus estimate of NT$69.6 billion.

In an earnings release, Foxconn stuck to its previous forecast of “strong” growth for revenue in 2026 and said it saw strong AI demand throughout 2026 and into 2027.

The company, which does not give numeric forecasts, said it predicted “high double digit growth” in 2027 for AI rack shipments.

“We remain very confident about our operations next year and expect continued growth,” chairman Young Liu told an earnings conference, although warning there were also “several external variables worth continued attention”.

Looking at the AI and consumer electronics supply chains, chips, memory and some key components are currently tight, which is a challenge facing the industry as a whole, Liu said.

“Although supply bottlenecks should gradually ease as new capacity comes online, overall demand is expected to still exceed supply next year, and the tight supply-demand situation may persist for some time,” he said.

Foxconn, formally called Hon Hai Precision Industry, in October reported a 47% year-on-year jump in third-quarter revenue.

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