Foxconn’s Saudi JV to Begin EV Charger Production in 2026 Amidst AI Growth
Foxconn Interconnect Technology’s (FIT) Saudi Arabian joint venture, Smart Mobility, will commence construction of its first Middle Eastern manufacturing facility in December 2025, with production of electric vehicle (EV) chargers slated to begin in 2026. This development comes as Foxconn anticipates strong revenue growth driven by the burgeoning artificial intelligence (AI) sector, despite a recent dip in quarterly profits.
Strategic Expansion into EV Charging Infrastructure
The joint venture, established in May with Saleh Suleiman Alrajhi and Sons, aims to capitalize on Saudi Arabia’s ambitious electrification goals. Prince Fahad bin Nawaf Al Saud, CEO of Smart Mobility, stated that the country targets 30% of cars to be electrified by 2030. Reuters
AI-Driven Revenue Growth
Foxconn, a key supplier to tech giants like Apple and Nvidia, is experiencing significant growth in its AI-related business. Chairman and CEO Sidney Lu projects that revenue from the auto mobility segment will reach $700 million this year. The company anticipates sustained strong demand for AI servers, potentially reaching a 40% market share. Lu estimates the AI industry will be worth $1 trillion within the next two to three years. Reuters, CNA
Q4 2025 Financial Performance
Despite the optimistic outlook, Foxconn reported a 2% decline in its fourth-quarter net profit, reaching NT$45.21 billion ($1.42 billion), falling short of the LSEG consensus estimate of NT$63.86 billion. This decrease is attributed to an increase in the company’s tax rate, even with a 22% jump in revenue during the same period. Reuters
Global Challenges and Expansion Efforts
Foxconn acknowledges external challenges, particularly the ongoing conflict in the Middle East, as a potential risk to its operations. The company is diversifying its manufacturing locations, with facilities in India, Mexico and Texas to support AI server production for Nvidia. Reuters
Foxconn previously attempted to establish a foothold in the EV manufacturing sector with a factory in Lordstown, Ohio, but later sold the facility in August, including machinery purchased in 2022. SRN News
Stock Performance
Year-to-date, Foxconn shares have decreased by 6%, underperforming Taiwan’s benchmark index, which has risen by 15%. Although, shares closed 0.9% higher on Monday ahead of the earnings release. Reuters