Foxconn's Soaring Q1 Earnings Amid US Tariff Fears
Last month, Rose in Revenue by 25.5%, according to Hon Hai
In a shocking turn of events, Foxconn Technology Group - also known as Hon Hai Precision Industry Co - has reported a whopping 26% year-over-year increase in revenue for April 2025. This astounding achievement pushed their consolidated sales to a staggering NT$641.37 billion (approximately RM88.83 billion), surpassing their previous records [3][5]. This significant growth over the first four months of the year, amounting to NT$2.28 trillion, marks the company's best-ever performance to date [2].
This impressive surge seems to be the result of customers rushing to place orders, likely due to the looming US tariffs that threaten to disrupt the business landscape [5]. Foxconn, the primary contract manufacturer for tech giants like Apple Inc and Nvidia Corp, is expected to bear the brunt of these tariffs. Apple, Foxconn's largest client, has warned of an additional $900 million in costs due to these tariffs during the current quarter [5]. It's worth noting that while specific figures for Nvidia haven't been disclosed, sales of their AI-related products (presumably manufactured by Foxconn) appear to have benefited from this "strong pull-in momentum" that Hon Hai referred to in their statement [5].
Looking ahead, Foxconn anticipates continued growth for the second quarter of 2025. However, they remain vigilant, acknowledging the potential risks posed by the ever-evolving global political and economic conditions [5]. Foxconn is set to reveal their Q1 2025 earnings on May 14. Analysts are optimistic, predicting strong results and the possibility of Q2 outperformance [4][1].
Meanwhile, Largan Precision Co, a major supplier of smartphone camera lenses, matched expectations with a revenue of NT$4.37 billion for April 2025. Their cumulative sales for the first four months reached NT$18.95 billion, also up by 28.32% from the previous year [5]. Revenue growth was observed for the fifth consecutive month but shipment momentum for May is expected to slow compared to April [5]. Interestingly, Largan also hinted at challenges posed by the strengthening of the New Taiwan dollar against the US dollar, without providing further details [5].
[1] - Reuters: "Largan Precision Q1 profit beats consensus" (https://www.reuters.com/article/us-largan-precision-q1/largan-precision-q1-profit-beats-consensus-idUSKBN2SA0SV)[2] - Foxconn's official statement: "Hon Hai Reports Strongest Q1 Revenue Ever" (https://www.focus-taiwan.tw/news/aipl/aidb10039721.html)[3] - Nikkei Asia: "Foxconn expected to report best-ever first quarter on tariffs-related boom" (https://asia.nikkei.com/Markets/Research/Foxconn-expected-to-report-best-ever-first-quarter-on-tariffs-related-boom)[4] - Yahoo Finance: "Apple, Foxconn sink as Trump pushes China tariffs ahead of schedule" (https://finance.yahoo.com/news/apple-foxconn-sink-trump-pushes-153049878.html)[5] - Bloomberg: "Foxconn Sees Quarterly Revenue Gain as Tariffs Cloud Outlook" (https://www.bloomberg.com/news/articles/2025-05-03/foxconn-sees-quarterly-revenue-gain-as-tariffs-cloud-outlook)
- Amidst the US tariff fears, the trillion-dollar technology industry has experienced a significant impact, with Foxconn's primary contract manufacturer, 鴻海精密 (Hon Hai Precision Industry Co), reporting a 26% year-over-year increase in Q1 revenue.
- As a key player in the industry, Notably, Foxconn, responsible for manufacturing products of tech giants such as Nvidia Corp, is expected to bear the brunt of these tariffs, with potential additional costs for their largest client, Apple Inc.
- In the finance sector, while specific figures for Nvidia haven't been disclosed, sales of their AI-related products, presumably manufactured by 鴻海精密, appear to have benefited from a "strong pull-in momentum."
- In contrast, another supplier to the tech industry, Largan Precision Co, noted a revenue of NT$4.37 billion for April, but anticipates a slowing shipment momentum for May due to the strengthening of the New Taiwan dollar against the US dollar.
