Foxconn Chairman Says AI Spending Surge Fuels 'Immense Confidence' in Growth

Foxconn Chairman Young Liu said on May 29 that soaring AI infrastructure spending gives the company "immense confidence" in its growth momentum. Speaking at an annual shareholders meeting in New Taipei, Liu noted capital expenditure by major cloud service providers already exceeded $700 billion this year and could reach $1 trillion next year. The world’s largest contract electronics maker, a key supplier to Nvidia and Apple, reported a 19% rise in first-quarter profit, beating market expectations. Foxconn expects its own capital expenditure to jump 30% this year from T$174 billion ($5.55 billion) as it expands manufacturing capacity for AI servers. Shares of Foxconn, formally Hon Hai Precision Industry, have risen 19% year-to-date, underperforming the broader Taiwan benchmark index’s 54% gain.