Foxconn predicts a ＂slightly better＂ prospect in 2024, warning of the shortage of AI chips.

According to the micro-network news, Apple iPhone assembler and Foxconn (Hon Hai Precision Industry), the world’s largest electronic product OEM, expect a "slight decline" in business this year. Foxconn said, "The prospect is better than last year, but it faces the problem of shortage of artificial intelligence (AI) server chips."

Liu Yangwei, chairman of Foxconn, said, "Although we made a considerable write-down in the first quarter, our performance last year was quite good", referring to the write-down related to its 34% stake in Sharp, Japan, worth NT$ 17.3 billion.

Liu Yangwei said, "As for the prospect of this year, I think it may be slightly better than last year." Foxconn said in November last year that it held a "relatively conservative and neutral" attitude towards the prospect of 2024.

He added that the demand for artificial intelligence servers will be "of course" good, but due to geopolitical issues, the uncertainty of the global economy will affect the demand for consumer products.

Apple predicts that iPhone sales will decline due to the blow to China’s business, and the total revenue target will be lower than Wall Street’s expected $6 billion.

The results confirmed the concerns of some analysts that Apple’s iconic products are losing market share in major Asian markets, and consumers in this market are buying folding screen phones and Huawei phones supported by Kirin chips.

Liu Yangwei said that even if the demand is strong, the production capacity of server chips is limited. "When the demand is to be met, it may be necessary to build a new factory."

Foxconn will announce its earnings for the fourth quarter of 2023 in March this year, and will also update its outlook for 2024.

The financial report shows that Foxconn’s net operating income in December 2023 was NT$ 460.12 billion, down 26.9% year-on-year; In 2023, the accumulated net operating income was NT$ 6.16 trillion, down 6.98% year-on-year. The company will release the January 2024 sales data on Monday (February 5).