Summarize this content to 2000 words in 6 paragraphs in Arabic Unlock the White House Watch newsletter for freeYour guide to what the 2024 US election means for Washington and the worldThe US government\u2019s tariff announcements have become a \u201cbig headache\u201d for technology companies such as iPhone maker Apple and cloud service provider Amazon, their manufacturing partner Foxconn said on Friday, in a rare public admission of the disruption caused by President Donald Trump\u2019s erratic trade policy.\u201cThe issue of tariffs is something that is giving the CEOs of our customers a big headache now,\u201d chief executive Young Liu told investors on an earnings call. \u201cJudging by the attitude and the approach we see the US government taking towards tariffs, it is very, very hard to predict how things will develop over the next year. So we can only concentrate on doing well what we can control.\u201dLiu said the company\u2019s customers were \u201cone after another\u201d hatching plans for co-operating with Foxconn on manufacturing in the US. He declined to give details as those plans were not yet finalised, but said there should be \u201cmore and more\u201d manufacturing in the US.The world\u2019s largest contract electronics manufacturer assembles the vast majority of the world\u2019s iPhones for Apple and also makes a broad range of other electronics products, including laptops, servers, robots, medical equipment and electric vehicles.Foxconn itself is affected by Washington\u2019s attempts to force more manufacturing to move onshore. The lion\u2019s share of its manufacturing capacity is in China \u2014 recently hit by an additional 10 per cent US tariff \u2014 India and Vietnam, which are both likely targets for Trump\u2019s planned reciprocal tariffs. Foxconn is also building what it said last October would be the world\u2019s largest factory for Nvidia Blackwell servers in Mexico, where Trump has slapped a 25 per cent tariff on its exports to the US.Foxconn forecast its information and communication products business, dominated by its contract work for Apple, would be stable this year. \u201cBut under the uncertainties related to geopolitics and tariffs, manufacturing will face challenges and demand might also suffer,\u201d Liu said, adding that the company would work closely with customers to adjust its global footprint. \u00a0But the Taiwanese group gave a bullish outlook for AI servers. The company\u2019s server assembly revenue increased 78 per cent in the fourth quarter of 2024 compared with the same period a year earlier, and it said it expected the AI server business to more than double in the current quarter.Liu said he did not share concerns that cloud service providers might cut spending this year. He said the success of Chinese AI company DeepSeek in developing a large language model with smaller hardware investment was likely to encourage larger numbers of medium-sized companies to develop their own LLMs, further boosting server demand.Driven by that strong growth, cloud and networking products would account for half the company\u2019s revenue this year, overtaking the consumer electronics business, which has long weighed on Foxconn\u2019s margins with its low-margin smartphone assembly operations.Foxconn reported a surprise 13 per cent year-on-year drop in net profit for the fourth quarter. Net earnings slid to NT$46.3bn (US$1.4bn) in the three months to the end of December, but the decrease was due to a drop in non-operating income, while operating profit increased by 32 per cent.<\/p>\n","protected":false},"excerpt":{"rendered":"
Summarize this content to 2000 words in 6 paragraphs in Arabic Unlock the White House Watch newsletter for freeYour guide to what the 2024 US election means for Washington and the worldThe US government\u2019s tariff announcements have become a \u201cbig headache\u201d for technology companies such as iPhone maker Apple and cloud service provider Amazon, their<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[63],"tags":[],"class_list":{"0":"post-240187","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-tech"},"_links":{"self":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/posts\/240187","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/comments?post=240187"}],"version-history":[{"count":0,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/posts\/240187\/revisions"}],"wp:attachment":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/media?parent=240187"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/categories?post=240187"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/tags?post=240187"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}