Foxconn’s July Sales Growth Slows Amid Trade Tensions, Pivots Toward AI Infrastructure

Hon Hai Precision Industry Co., known as Foxconn, reported a 7.25% year-on-year sales increase in July to NT$613.8 billion ($20.5 billion), marking its slowest growth since January. The figure fell short of analyst expectations of a 12.2% jump, as the tech manufacturer faces headwinds from U.S.-Taiwan trade tensions.

President Donald Trump's recent 20% tariff on Taiwanese exports to the U.S. looms over the sector, though electronics remain exempt for now. A Section 232 investigation into semiconductor trade could further impact Foxconn's supply chain.

The company finds potential relief in the AI infrastructure boom. Tech giants Microsoft, Amazon, Alphabet, and Meta plan combined 2024 investments exceeding $344 billion, largely targeting data center expansion. Foxconn's server assembly partnership with Nvidia positions it to benefit from the latter's planned $500 billion U.S. AI infrastructure rollout.

In a strategic shift, Foxconn sold its Ohio automotive plant for $375 million on Monday, signaling renewed focus on high-growth sectors like AI hardware manufacturing.