TAIPEI – Foxconn says it will give priority to profit improvement, with a goal of increasing its gross margin to 10% over the next three to five years, according to reports.

Currently, the firm is primarily focusing on optimizing its current operation. For the second phase, Foxconn aims to work on digital transformation via automation, digitalization and smart processing.

Because digital transformation also spans transformation in corporate structure and culture, successful transformation is expected to be about 30%, but some affiliates of Foxconn have begun doing so, according to Foxconn chairman Liu Young-way.

For the third phase, focus will be on electric vehicles, smart medical care and robotic applications, with a goal of US$1.2 trillion by 2025. Foxconn will use AI, semiconductor and 5G/6G network technologies to further improve its profitability.

Foxconn’s third quarter consolidated revenue was NT$1.39 trillion (US$45.1 billion), up 1% year-over-year and 20% sequentially. Net profit was NT$30.7 billion, up 23% compared to the third quarter of 2018 and 80% sequentially.

For the first nine months of 2019, Foxconn's consolidated revenues reached NT$3.6 trillion, up 3.4% year-over-year. Net profit was NT$67.5 billion, up 1.7%.

Ed.: NT 1 = US$0.03

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