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Q2 net profit expected to rise 14% on-year

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Foxconn bullish on AI server demand

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Q2 earnings call at 0700 GMT on Thursday

By Wen-Yee Lee

TAIPEI, Aug 14 (Reuters) - Taiwan's Foxconn,

the world's largest contract electronics maker, is expected to

report on Thursday that second-quarter profit rose 14% on

continued strong demand for artificial intelligence servers.

Net profit for April-June for Apple's ( AAPL ) top iPhone

assembler and Nvidia's ( NVDA ) server maker likely came in at

T$39.8 billion ($1.33 billion), up from T$35.05 billion a year

earlier.

Foxconn, formally called Hon Hai Precision Industry ( HNHPF ), last

month reported record second-quarter revenue on strong demand

for AI products but cautioned about geopolitical and exchange

rate headwinds.

Global trade uncertainty could dim the prospects for its

outlook this year, as it has a major manufacturing presence in

China, though Washington and Beijing this week extended a tariff

truce for another 90 days.

Most of the iPhones Foxconn makes for Apple ( AAPL ) are assembled in

China, but the bulk of those sold in the United States are now

produced in India. The company is also building factories in

Mexico and Texas to make AI servers for Nvidia ( NVDA ).

In its July sales report, Foxconn said while the third

quarter should see on-year growth - the company does not provide

numerical guidance - the impact of "evolving global political

and economic conditions" would need continued close monitoring.

Foxconn has also been looking to expand its footprint in

electric vehicles, which the company sees as a major future

growth generator, though that has not always gone smoothly.

Earlier this month, Foxconn said it had struck a deal to

sell a former car factory at Lordstown, Ohio, for $375 million,

including its machinery, but said it would continue to use the

site to make a broader range of products aligned with its

strategic priorities.

Foxconn has expanded beyond its traditional role as an

iPhone assembler in other areas too. Last month it formed a

strategic partnership with industrial motor maker TECO Electric

& Machinery to build data centres.

Foxconn holds its earnings call at 3 p.m. (0700 GMT) in

Taipei on Thursday, where it will also update its outlook for

the year.

Foxconn's shares have risen 7.9% so far this year,

outperforming the broader Taiwan index's 5.8% gain.

($1 = 30.0020 Taiwan dollars)