Taiwan's Foxconn, the world's largest contract electronics maker, said on Thursday it was confident about its business next year on strong artificial-intelligence demand, as it reported forecast-beating quarterly profit — but it warned that supply chains for chips, memory and key components remain tight, Reuters reported from Taipei.

Source: Reuters, Nov 12, 2026

Net profit for the July–September period at Foxconn — formally Hon Hai Precision Industry, Nvidia's biggest server maker and Apple's top iPhone assembler — was NT$77.5 billion (about US$2.35 billion — yaani roughly 2.35 billion US dollars), up 34 percent on a year earlier and beating an LSEG consensus estimate of NT$69.6 billion.

Dow Jones Newswires, reporting the same results, put net profit at NT$77.52 billion, equivalent to US$2.36 billion, against a FactSet analyst poll of NT$69.35 billion, and said revenue rose 46 percent to NT$3.016 trillion, with cloud and networking products — including AI servers — accounting for 54 percent of revenue.

Source: Dow Jones via Morningstar, Nov 12, 2026

AI is now the bigger half of Foxconn

"Cloud and networking products already account for more than 50 percent of our revenue this year and we expect that share to exceed 60 percent over the next three to five years," Chairman Young Liu said during the earnings conference, according to Reuters. The company, which does not give numeric forecasts, stuck to its previous forecast of 'strong' revenue growth for this year and predicted 'high double-digit growth' in 2027 for AI rack shipments.

"We remain very confident about our operations next year and expect continued growth," Liu said, adding that global cloud service providers were expected to keep increasing AI-related capital spending next year, although he warned of 'several external variables worth continued attention.'

The warning: demand will outrun supply again

Looking at the AI and consumer-electronics supply chains, chips, memory and some key components are currently tight — a challenge facing the industry as a whole, Liu said. "Although supply bottlenecks should gradually ease as new capacity comes online, overall demand is expected to still exceed supply next year, and the tight supply-demand situation may persist for some time," he said, adding that he was cautious about the outlook for the PC segment.

The result underlines why Taiwan sits at the centre of the global AI build-out: the island's contract manufacturers assemble the servers that US cloud giants are racing to install, and Foxconn's order book is now driven more by data centres than by smartphones. Invezz noted the profit rose from NT$57.7 billion a year earlier and that October revenue reached a record NT$1.31 trillion, up nearly 46 percent year on year.

Source: Invezz, Nov 12, 2026

What happens next will be watched well beyond Taipei: if Foxconn cannot get enough chips and memory, AI server deliveries across the industry slow with it. The company's next monthly revenue update, and whether the tight supply it flagged starts to ease, are the next tests of whether the AI hardware boom can keep its current pace into 2027.