Foxconn's AI Bet: Shifting Focus from Electronics

Foxconn, the worlds largest contract electronics maker, is shifting its focus from traditional consumer electronics to artificial intelligence (AI). The company plans to invest between two and three billion dollars annually in AI over the next three to five years, making AI the majority of their capital expenditure. This strategic pivot comes as their cloud and networking business, which includes AI servers, has already surpassed consumer electronics in revenue for two consecutive quarters.In addition, Foxconns chairman, Liu, commented on the electric vehicle sector in China, predicting a period of consolidation due to fierce competition and waning government support. He believes that many less profitable EV startups will likely disappear, and the Chinese automotive landscape will become more stable after this consolidation period. Foxconn is not abandoning electric vehicles entirely but is holding off on increasing investment until market conditions improve. Liu drew a parallel between the current EV market and the early personal computer industry, suggesting that carmakers will likely turn to companies like Foxconn for outsourced production as pressure increases.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.