Core Insights - Foxconn reported a lower-than-expected net profit for 2024, attributed to underperformance in consumer electronics, despite strong demand for AI servers [1][2] - The company's full-year net profit increased by 7% to NT$152.7 billion (US$4.6 billion), falling short of the average forecast of NT$159.4 billion [2] - Full-year revenue rose by 11% to NT$6.9 trillion, surpassing market expectations of NT$6.8 trillion [2] AI Server Business - Foxconn experienced a significant increase in its AI server business, with revenue up by 150%, indicating robust demand in the generative AI sector [3] - The company anticipates 2024 to be the "Year of AI," with shipments expected to rise in every quarter [3] Global Operations and Tariffs - The earnings announcement coincided with the imposition of tariffs by the US on major trading partners, including China, which has affected Foxconn's operations [4] - Despite the tariff threats, Foxconn is constructing a $900 million AI server plant in Mexico, which is projected to be the largest powered by Nvidia's GB200 AI chips [5] Automotive Sector Expansion - Foxconn is exploring potential cooperation with Nissan after unsuccessful merger talks with Honda, indicating a strategic move into the Japanese EV market [7] - The company is open to acquiring Renault's stake in Nissan and plans to announce developments in the EV sector within one to two months [7]
Taiwan tech giant Foxconn's 2024 profit misses forecasts