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
STRONG INTEREST: Analysts have pointed to optimism in TSMC’s growth prospects in the artificial intelligence era as the cause of the rising number of shareholders The number of people holding shares of chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) hit a new high last week despite a decline in its stock price, the Taiwan Depository and Clearing Corp (TDCC, 台灣集保) said. The number of TSMC shareholders rose to 2.46 million as of Friday, up 75,536 from a week earlier, TDCC data showed. The stock price fell 1.34 percent during the same week to close at NT$1,840 (US$57.55). The decline in TSMC’s share price resulted from volatility in global tech stocks, driven by rising international crude oil prices as the war against Iran continues. Dealers said
Taiwan’s natural gas supply remains stable through the end of May, despite rising concerns about potential disruptions to Qatari liquefied natural gas (LNG) supplies due to escalating conflicts in the Middle East, the Ministry of Economic Affairs said yesterday. The ministry in a statement said that Taiwan has completed preparations for natural gas supply and shipping schedules through the end of May. It has also made plans to increase natural gas imports from regions outside the Middle East in June to ensure a stable supply, it added. Taiwan sources natural gas from 14 countries and is not solely dependent on the Middle East,
China is clamping down on fertilizer exports to protect its domestic market, industry sources said, putting an additional strain on global markets that were already grappling with shortages caused by the US-Israeli war on Iran. China is among the largest fertilizer exporters — shipping more than US$13 billion of it last year — and it has a history of controlling exports to keep prices low for farmers. Shipments through the war-blocked Strait of Hormuz account for about one-third of the sea-borne supply. This month, Beijing banned exports of nitrogen-potassium fertilizer blends and certain phosphate varieties, sources said. The ban, which has not
Grab Holdings Ltd agreed to buy Delivery Hero SE’s Foodpanda operations in Taiwan for US$600 million, a deal that marks its first foray outside of its Southeast Asian base. The cash acquisition will allow Grab to expand into 21 cities across Taiwan, the Singapore-based ride-hailing and delivery company said in a statement yesterday. Grab expects the transaction to be completed in the second half, subject to regulatory approvals. The purchase will give Grab a presence on the island of about 23 million people, helping it to expand beyond its intensely competitive home market. Grab has seen growth slow dramatically as it takes
RSS