This cautious statement from Foxconn is buried in an otherwise positive earnings report, but it reveals the discreet anxiety that is gripping global tech manufacturing. Despite posting record Q2 revenue of T$1.797 trillion, the world’s largest contract electronics maker is essentially warning that geopolitical storms could quickly obstruct their success.
U.S. President Donald Trump said he had signed letters to 12 countries outlining the various tariff levels they would face on goods they export to the United States, with the ‘take it or leave it offers to be sent out on Monday. Foxconn’s leadership clearly sees these trade tensions as a direct threat to their business model, which depends on seamless global supply chains.
The important factor in all this is Foxconn’s unique position in the tech ecosystem. As Apple’s biggest iPhone assembler and a key supplier to AI chip giant Nvidia, they sit at the intersection of consumer electronics and the prosperous AI infrastructure market. Intense AI demand led to strong revenue growth for its cloud and networking products division, yet this growth engine could be vulnerable to trade disruptions.
The company’s geographic exposure increases these risks. The Chinese city of Zhengzhou is home to the world’s largest iPhone manufacturing facility, operated by Foxconn, making them a prime target for any US-China trade restrictions. Meanwhile, their Taiwan headquarters adds another layer of geopolitical complexity because of rising tensions in the Taiwan Strait.
The market’s attitude clearly shows this uncertainty. Foxconn’s shares jumped 76% last year, far more than the 28.5% rise for the Taiwan market, but are down 12.5% so far this year, showing broader pressure on tech stocks rattled by Trump’s tumultuous trade policy.
For investors, Foxconn’s warning serves as a canary in the coal mine for global tech manufacturing. Their cautious tone suggests that even companies benefiting from AI demand growth recognize that geopolitical risks could quickly spoil fundamental business strength.
