Foxconn Forecasts Its Business Better, Despite Chip Shortage For AI Servers

Foxconn estimates that his business will be better this year (photo: do. Foxconn)

JAKARTA - Taiwan's Foxconn expects its business this year to be slightly better than last year, although the company faces a chip shortage for AI servers.

Speaking to reporters in Taipei, Foxconn Chairman Liu Young-way said his company was making pretty good efforts, although 34% of its shares in Japanese electronics maker Sharp Corp., have declined.

"We did pretty well last year. Regarding this year's prospects, I think it might be a little better than last year," Liu said, citing Reuters Monday, February 5.

According to Liu, demand for artificial intelligence (AI) servers would be very good, but geopolitical issues and global economic uncertainty will affect demand for consumer products.

Liu said the production capacity of chips for servers was limited, even with strong demand. If you want to meet demand, there may need to be a new factory," he added.

Finally, Foxconn, now officially known as Hon Hai Precision Industry Co Ltd. will soon release its fourth quarter earnings report, sometime next month. The company will also share its job prospects on Monday.

Meanwhile, in December last year, Foxconn and Pegatron in Taiwan had stopped production of iPhones from Apple at their factories near Chennai, southern India, due to heavy rains.

Then on February 1, Tata Group also admitted that it was in further talks with Taiwanese Pegatron to form a partnership to operate the iPhone assembly plant being built by the Indian company in the southern state of Tamil Nadu.