Foxconn slashes forecast as tariffs and currency bite
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The news: Taiwan’s Foxconn reported a 91% jump in first-quarter net profit to NT$42.12 billion ($2.2 billion) and a 24% revenue rise to NT$1.644 trillion, but lowered its 2025 revenue outlook to “stronger” from “significantly stronger” than last year due to currency appreciation and tariff risks.
What they said: Chairman Young Liu said “rapid changes in US tariff policies” and “recent exchange rate fluctuations” had led the world's largest contract electronics maker to take “a more cautious view.”
CFO David Huang said each NT$1 appreciation in the Taiwan dollar affects revenue by about 3%.
The context: The stronger Taiwan dollar is thought to be influenced by speculation—denied by Taipei—that the US requested the appreciation amid tariff talks. The Trump administration imposed a 32% tariff on Taiwanese goods in April, later paused for 90 days, but a 10% duty remains.
Most of the iPhones Foxconn makes for Apple are made in China, and Foxconn is building an AI server plant for Nvidia in Mexico. Liu said Foxconn’s global production base in 24 countries helps limit supply chain impact.
The numbers: Cloud and networking products, including AI servers, made up 34% of Q1 revenue, and Foxconn still expects AI server revenue to top NT$1 trillion in 2025.
The company also continues to expand in electric vehicles, with Foxtron last week announcing an MOU with Mitsubishi Motors for the supply of an EV model.
The sources: Foxconn release, The Wall Street Journal
