Hon Hai Precision Industry Co (鴻海精密) on Saturday announced that its sales for last month rose 10 percent year-on-year, driven by strong growth in cloud and networking products amid the ongoing artificial intelligence (AI) boom.
The company, also known internationally as Foxconn Technology Group (富士康科技集團), reported consolidated sales of NT$540.24 billion (US$18.67 billion) for the month, the highest ever for the period, and a 10.09 percent increase from a year earlier, although it was down 12.26 percent from the previous month.
Hon Hai, which is Apple Inc’s primary iPhone assembler and makes servers powered by Nvidia Corp’s AI accelerators, said its cloud and networking division benefited from solid global demand for AI applications and cloud services to generate higher sales last month.
Photo: Annabelle Chih, Bloomberg
In addition, its smart consumer electronics division saw significant sales growth, boosted by international brands launching new entertainment devices.
Sales of the company’s electronic component operations last month were little changed from a year earlier, while the computing division suffered a sales decline in the month, Hon Hai said.
Compared with May, the company’s major divisions saw declines in sales last month, attributed to the stronger New Taiwan dollar against the US dollar and reduced momentum from clients in building up inventories, it said.
For the second quarter, Hon Hai reported consolidated sales of NT$1.8 trillion, a 15.82 percent year-on-year increase and a 9.45 percent rise from the first quarter, the company said.
In the first half of this year, consolidated sales reached NT$3.44 trillion, a 19.68 percent increase compared with the same period last year, it said.
This quarter, sales growth momentum is expected to accelerate quarterly and annually, as the information and communication technology industry enters the traditional peak season, Hon Hai said.
Separately, Hon Hai’s industrial computer subsidiary, Ennoconn Corp (樺漢科技), on Friday reported a 7.8 percent year-on-year decline in sales last month, totaling NT$11.35 billion, and a 1.5 percent drop from the previous month.
The company, whose businesses mainly comprise three major units: design and manufacturing, systems integration and brand business, reported a 20.4 percent year-on-year increase in sales within the design and manufacturing segment, reaching NT$2.8 billion, while its branding business saw a 4.6 percent sales growth, totaling NT$5.1 billion.
However, the systems integration segment experienced a significant 32.6 percent decline in sales, falling to NT$3.44 billion, it said in a statement.
Sales in the second quarter were up 0.93 percent from the first quarter, but down 4.2 percent from a year ago, to NT$34.79 billion, mainly due to the appreciation of NT dollar against the greenback, it said.
Sales in the first half of this year were NT$69.25 billion, up 0.3 percent year-on-year, it added.
The company anticipates stronger collaboration with international partners to drive stable growth in the second half of the year. It also plans to enhance its global presence and regional management strategies, it said.
Additional reporting by Meryl Kao
Starlux Airlines Co (星宇航空) today unveiled a long-haul network expansion plan at a shareholders’ meeting in Taipei, including direct flights to Barcelona, Spain, and Zurich, Switzerland, as well as a service connecting Taipei, Sydney and New Zealand. Starlux is to become the first Taiwanese carrier to offer non-stop services to the two European cities, while the inaugural oceanic route is expected to expand transit opportunities within the Australia-New Zealand market, Starlux said. Flight services to Chicago, Dallas, Washington and New York are under evaluation, the airline added. Prior to the shareholders’ meeting, the airline earlier this year announced that it would be
Netherlands-based semiconductor equipment supplier ASML Holding NV yesterday said that it is planning to hire an additional 1,000 people in Taiwan this year in response to growing demand from clients. ASML had previously planned to recruit 600 people this year, but that the plan has been adjusted upward, ASML vice president and ASML Taiwan general manager Grace Wang (汪佳慧) told reporters. ASML has a workforce of more than 4,500 in Taiwan, accounting for about 10 percent of its global total, Wang said. This year’s recruitment campaign would focus on adding people in the customer support, manufacturing and supply chain domains to assist ASML
UNDER MICROSCOPE: Taiwan detained three people who allegedly conspired to buy servers in Taiwan and export them using fraudulent documentation, prosecutors said Nvidia Corp chief executive officer Jensen Huang (黃仁勳) on Saturday urged Super Micro Computer Inc to tighten up on compliance after Taiwan detained three people this week for allegedly making fraudulent declarations about artificial intelligence (AI) servers made by its US partner. The development marked the nation’s first crackdown on semiconductor smuggling, which grew after the US slapped restrictions on exports of high-end chips such as Nvidia AI accelerators to China. Nvidia is “rigorous” in explaining regulations to all of its partners, Huang told reporters after arriving in Taipei. “Ultimately Super Micro has to run their own company,” he said in response to
Nvidia Corp yesterday announced that CEO Jensen Huang (黃仁勳) would attend an employee meeting in Taipei tomorrow to celebrate the launch of the company’s Taiwan headquarters project. Huang would attend a gathering at the site of Nvidia’s planned headquarters in Beitou Shilin Technology Park (北投士林科技園區), the company said in a statement. After arriving in Taiwan on Saturday last week, Huang told reporters that he plans to meet with Quanta Computer Inc (廣達) chairman Barry Lam (林百里) and Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) chairman C.C. Wei (魏哲家), and would attend the groundbreaking ceremony for Nvidia’s Taiwan headquarters tomorrow. Nvidia has not yet applied
RSS