Foxconn is Buoyed By Nvidia
The world's largest electronics manufacturer has gotten a second wind from the boom in demand for AI hardware. Its core business model however remains under strain.
With annual revenues of $261 billion and over 800,000 employees, Foxconn is one of the largest companies in the world by both revenue and headcount and the largest such company from Taiwan.1 Foxconn is a contract electronics manufacturer that produces billions of individual electronic devices and components annually, with production tallies as high as 5.8 billion items in 2021.2 Holding an estimated 30-40% of global market share for contract manufacturing of electronics, Foxconn produces everything from smartphones to computers to video game consoles for companies like Amazon, Huawei, Sony, Dell, and Apple—the latter of which has been its most important customer for over a decade thanks to the success of the iPhone.3 Since 2023, Foxconn has also become the main electronics manufacturing partner for Nvidia, turning Nvidia’s powerful chips into completed server products that fill the halls of data centers for artificial intelligence.