Foxconn sees AI driving strong server demand, but full year to be flat

Apple Inc supplier Foxconn said on Wednesday artificial intelligence applications would strongly drive demand for its server business this year but reiterated 2023 overall would be a flat one for the company on global economic woes.

Foxconn Chairman Liu Young-way told the company’s annual shareholders meeting 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.”