According to a report from a common news source, Liu said that most of Foxconn’s spending over the next three to five years will move toward artificial intelligence infrastructure and technology development. He added that this will make AI account for more than half of the company’s annual capital expenditure of about five billion dollars.
The transformation is already evident in Foxconn’s financial performance. The cloud and networking division, which includes AI servers, has grown faster than its consumer electronics business for two consecutive quarters. This shows how quickly the company’s revenue mix is shifting.
Liu shared a blunt view of China’s electric vehicle sector. He described the environment as “very fierce competition” and warned that a shakeout is likely as unprofitable startups struggle and government support becomes limited. “They’re not making money,” he told the common news source, noting that incentives are too small for the government to support every electric vehicle brand in the world’s largest automobile market.
He said that China’s electric vehicle market will become “much more stable” after a period of consolidation. Foxconn had earlier aimed for a five per cent global electric vehicle market share by twenty twenty five, but postponed this target last year because of slower demand and weaker growth in the sector. Liu said Foxconn has not dropped its electric vehicle plans, but is waiting for better conditions before increasing investment. He added that future expansion areas may include quantum computing and robotics.
Liu also confirmed to the common news source that Foxconn is speaking with the Japanese government about possible investments in electric vehicles and artificial intelligence. He did not share more details but stressed that local manufacturing of artificial intelligence systems will be essential to protect data sovereignty, which is becoming a growing concern for governments around the world.
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