Foxconn expects growth rate to decrease by half to 15% in the next 10 years

According to foreign media reports, Foxconn expects that the average annual revenue growth rate in the next 10 years will be reduced by half from the previous 10 years, indicating that mature high-tech industries cannot maintain excessive growth.

A Hon Hai spokesman said that the goal of at least 30% annual revenue growth has been unrealistic, and the growth rate will be reduced by about half, "which indicates the growth rate of manufacturing capacity and human resources."

Foxconn said that due to revenue growth of about 50% in the first half of the year, revenue growth this year will still exceed 30%. Foxconn received revenue of NT$1.959 trillion (approximately US$61.5 billion) last year.

Foxconn's downward adjustment of growth expectations will irritate investors because it confirms analysts' concerns. Analysts worry that it is difficult for Foxconn to maintain a high growth rate without a clear direction for future growth.

In the past 10 years, Foxconn has maintained rapid growth in revenue and profits through vertical integration in new areas and deepening its manufacturing operations. Foxconn has acquired a number of companies with strong manufacturing capabilities or profitable businesses.