.png){kind=logo}
The world's largest contract electronics manufacturer Foxconn announced that it has hit an unprecedented Taiwan$1.85 trillion (US$57.3 billion) in revenue for the third quarter.
This is an incredible 20.2% rise year-over-year for the company. The group cites AI servers as the main driving force behind the surge.
The Apple iPhone assembler said, "Our results exceeded our expectations, and we believe it contributes to the growing influence of AI on our business.".
The massive AI server requirements catapulted the company's cloud and networking products division, putting it at the forefront of the AI boom.
Growth was also witnessed in the smart consumer electronics segment mainly due to recent launches in the space. However, year-on-year growth in this segment remained flat due to tough competition in the market.
Foxconn reported a record-breaking revenue amounting to T$733 billion, approximately US$23.46 billion in September. In a year-over-year comparison, it was a 10.9% jump in Q3 which makes it the second-highest revenue-generating month so far on record for the company.
"As we enter the peak season, we anticipate operational momentum to build," Foxconn said, having a favorable outlook toward the holiday season.
The company also believes that results for the fourth quarter will be in line with market expectations, without offering specific numbers. Foxconn shares have risen 86% this year, according to the Taiwan Stock Exchange, in comparison to the 24 percent gain in the wider Taiwan market, an indication of solid investor confidence.
Shares of Foxconn rallied 3.7% on Friday after the company reported better-than-expected revenue, outperforming a 0.4% decline for the benchmark index as the market lapped up the sales report. Foxconn will release full third-quarter earnings on November 14.
The company would also hold its annual Tech Day on October 8-9, when new product developments and partnerships are likely to be announced.
Although tech giants like Foxconn are flourishing with the AI data centers demand boom, it is also raising concerns regarding AI emissions that are polluting the environment.
A report by The Guardian highlighted the fact that the emissions of Google, Microsoft, Apple, and Meta-controlled data centers amounted to 662% higher than the actual claims.
This poses a very important question regarding the failure of these tech titans to demonstrate accountability regarding their environmental impact. This is a red flag to their commitment to sustainability. Read more
