Business

Foxconn Having Record Year, Expects Mideast Impact If Conflict Drags On
By Reuters | 05 Mar, 2026

The world's leading contract manufacturer for Nvidia and major electronics brands hasn't yet been adversely impacted but may suffer from higher prices for oil and other raw materials if the Iran conflict persists.

Everyone will feel the impact on prices of oil and raw materials if the U.S. and Israeli conflict with Iran drags on, the chairman of Foxconn, the world's largest electronics maker and Nvidia's key AI server maker, said on Friday.

The escalating conflict in the Middle East has rattled global markets and fuelled concern over risks to supply chains. 

Speaking to reporters at Foxconn's headquarters in Taiwan's city of New Taipei, Young Liu said the fallout for his company was currently limited, however, and he expected 2026 to be a very good year for it.

Foxconn has reported record revenues, driven by strong demand for artificial intelligence products, although prolonged conflict in Iran has boosted concern over pricier energy.

U.S. tech giants such as Microsoft and Nvidia have been positioning the United Arab Emirates as a regional hub for artificial intelligence computing needed to power services such as ChatGPT. 

Iran has launched a wave of missiles at Middle East targets in retaliation for U.S. and Israeli strikes that killed Supreme Leader Ayatollah Ali Khamenei on Saturday.

(Reporting by Ben Blanchard; Additional reporting by Wen-Yee Lee; Editing by Anne Marie Roantree and Clarence Fernandez)