Apple iPhone maker Foxconn said on Wednesday that artificial intelligence (AI) applications would strongly drive demand for its server business this year, news agency Reuters reported. However, Apple's biggest supplier maintained that this year overall would be a flat one for the company on the back of global economic woes.
Foxconn Chairman Liu Young-way was quoted as saying by Reuters that the firm remained cautious about this year due to monetary policy tightening, geopolitical tensions and uncertainty over inflation, but servers were a bright spot due to surging interest in AI.
"More and more people are using ChatGPT," he said.
"You can see the market for AI servers will rise much faster than expected. We expect that in the second half of this year there may be a three digit increase."
The Taiwanese company has a 40 per cent global market share for servers and aims to further increase that, Liu added.
Meanwhile, Foxconn is set to invest a whopping $500 million to set up manufacturing facilities in the southern Indian state of Telangana, Reuters reported earlier this month. Foxconn's investment in the state is likely to give way to 25,000 jobs in the first phase, according to Telangana's IT minister KT Rama Rao had announced on Twitter.
According to a press statement: “The Government of Telangana’s unwavering commitment to fostering a favourable business environment has enabled Foxconn Interconnect Technology to invest and grow in the State."
Foxconn has also bought 300 acres of land in Bengaluru, months after signing an MoU with the Karnataka government to invest in the state. In filings with the London Stock Exchange (LSE), Hon Hai Precision Industry informed that its subsidiary Foxconn Hon Hai Technology India Mega Development on May 9 purchased land for approximately Rs 300 crore ($37 million) in the Bengaluru rural district of Karnataka, says a previous report by Moneycontrol.