FoxConn and other gadget-makers are spreading their empires star-news.press/wp

FOxconn, Taiwan Electronics manufacturer, it is known for making iPhones in China. Still in October, he announced plans to build a Mexican in Mexico, they will break the servers made with artificial intelligence (A-) Chips nvidia, a huge semiconductor. To meet roar demand AI, The power of the plant will be, Liu young people, President of FoxConn, “very horrible.”

This phrase may describe the ambitions of the contract manufacturing industry. The company, those who do the gadgets of other companies are in a tear. On January 5 FoxConn, it is also known as Hon Hai, announcing sales of $ 65 million, rose by 15% year-on-year. His smaller rivals, such as Quanta Computer and Jail, have also recently reported strong results. In the last two years, the combined market of the largest manufacturers in the last two years (see table). With a spectacular performance, the company is busy spreading in new products and places.

The final success is great Ai. Smartphone request and PageS stopped, for the data centers of the balloon. On January 3, Microsoft said he would have $ 80 million a- Infrastructure this year. For FoxConn, a large supplier to giant software, A- Servers form a quarter of sales in 2025. The shared quantum could be half, according to a Japanese bank. Other contract manufacturers, such as Luxshare, China Supplier with Apple and comparison, Taiwan’s A- will revive sales.

Contract manufacturers have also spread in new industries. October FoxConn presented two new electric vehicles designs to add to other six models that build for companies. Competitors like Pegatron are making 5 private gearsE Networks. Quanta is using available medical devices and home gadgetry. FoxConn exploded two satellite prototypes in space.

Companies are trying to control more value chains. FoxConn wants to give parts such as liquid cooling technologies, for server rails. Luxshare, who began as a component for a smartphone life, is making more assembly. At December 31 he announced that he would ask Wingtech’s assembly division, another Chinese supplier to Apple.

At the same time, a geographical change is underway, giving the first rounds made by Donald Trump in 2018. According to the counterpoint, research company, the production of smartphones and PageS remains mostly in China, even if there was any relocation to places like India and Vietnam. But manufacturing of other products closer to customers. About two-thirds of the Taiwan contract manufacturers occur in Mexico now, JPMorgan Chase, a bank. This cuts the cost of shipping to the giant cloud computations of Americans, and their largest customers.

For all extent, there are several risks of contract manufacturers. It is competition. Companies constantly invade each other. The two former employees of the Luxshare Foxconn factory were created, and is strengthened with it. TATS, Indian conglomerates, purchased local iPhone operations in the Taiwan Local Manufacturer of Wistron, participates in Indian operations in India and Pegatron.

Another risk is customer concentration. About 70% of Luxshare’s business comes from Apple. FoxConn gets around 60% of the income of iPhone-maker. Related sales A- It means that some contract manufacturers trust in Nvidia in very lively.

The final risk is trading. The Lord Trump said fares in Canada, China and Mexico. Addiction of some customers suggest that contract manufacturers may struggle to spend greater costs. This may mean thinner margins that gadget-managers absorb rates or plants. Trump’s first commandment and Samsung had successfully lobbied for exceptions for their supply chains. Contract manufacturers will hope to repeat, perhaps with the help of giant cloud. Despite the diversification, despite the efforts they make FoxConn and friends, there are mercy in large technology. E ■

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