Taiwan's Foxconn, the world's largest contract electronics maker,today raised its full-year business outlook despite concerns about slowing demand due to rising inflation, buoyed by strong sales of technology from smartphones to servers.
Like other global manufacturers, the Taiwanese company has been grappling with a severe shortage of chips that has hurt smartphone production, including its main customer Apple, in part because of China's Covid-19 lockdown.
But the company's June sales jumped 31% from a year earlier, a record high for the month, thanks to proper supply chain management and higher sales of consumer electronics such as smartphones, which account for 30 percent of its revenue. most.
Foxconn's better-than-expected June sales came as investors fretted about slowing tech demand amid a downturn in major markets due to high inflation and the war in Ukraine.
Global chip stocks tumbled on Friday after memory chip maker Micron Technology Co on Thursday forecast revenue for the current quarter to be significantly lower than expected and said the market has softened "substantially in a very short period of time."In a statement, Foxconnsaid it was optimistic about its third-quarter business, saying it could see "significant growth" compared to the same period last year.
Foxconn said it had improved its outlook for 2022, beating its no-growth forecast, without providing details.
The company, whose full name is Hon Hai Precision Industry Co., Ltd., said it had achieved double-digit annual growth in sales of server and telecom products so far this year.
The company said China's Covid-19 controls had limited impact on its production, as it kept field workers in a "closed loop" system.
Shares in the company closed down 1% today, largely in line with the broader market.They have fallen 3.9% so far this year, giving the company a market value of US$49.3 billion (RM217 billion).
