The world’s largest contract electronics manufacturer expressed strong optimism about its future expansion prospects on Friday, with leadership citing surging artificial intelligence demand as a primary driver.
Speaking at the company’s annual shareholder gathering in New Taipei, Chairman Young Liu said the Taiwan-based firm maintains tremendous confidence in its growth trajectory. The electronics giant, which serves as the primary server manufacturer for Nvidia and top iPhone assembler for Apple, recently posted impressive financial results with first-quarter profits jumping 19% compared to the previous year.
Liu highlighted the substantial investment activity among major cloud service providers, noting their capital expenditures have already surpassed $700 billion this year. “Their capital expenditure is our market. It has already reached $700 billion, and their capital expenditure next year is expected to potentially reach $1 trillion. This gives us immense confidence in our future growth momentum,” Liu stated.
The company, officially known as Hon Hai Precision Industry, announced earlier this month plans to increase its own capital spending by 30% this year from the previous year’s T$174 billion ($5.55 billion) figure. This investment will support expanded manufacturing capabilities for AI servers to meet growing market demand.
Despite the positive outlook, the company’s stock performance has lagged behind the broader market, rising 19% year-to-date compared to Taiwan’s main index gaining 54%.
