This report does not constitute a rating action. Overview Key strengths Key risks Core subsidiary of Hon Hai Precision Industry Co. Ltd. High customer and product concentration, albeit moderating. Leading global electronic manufacturing service (EMS) provider. Large capital expenditure (capex) for overseas capacity expansion. Above-industry return on capital backed by strong engineering expertise and efficient operations. Sizable working capital needs to grow the AI server business. Maintaining a net cash position. Foxconn Industrial Internet Co. Ltd (Fii) should benefit from increasing demand for AI infrastructure with rising investments from major cloud services providers. Fii is the world's largest server manufacturer, and the company expects to capture at least 40% market share in the global AI server market. We believe Fii's
