NEW TAIPEI, Taiwan, March 6 (Reuters) – 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 Taipei’s neighbouring 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.
“I think this war is something nobody wants to see. We hope it ends as soon as possible,” he said.
Given the region’s key role as a global oil producer, if the war drags on it could push oil to $100 a barrel, and push up prices for raw materials, Liu added.
“If these effects last longer, everyone will start to feel them. But if the duration can be kept short, then at least for now, the impact isn’t very big, based on what we’re seeing at the moment.”
Foxconn has reported record revenues, driven by strong demand for artificial intelligence products, although prolonged conflict in Iran has boosted concern over pricier energy.
Foxconn reports its fourth-quarter earnings on March 16 where it will update its outlook for the current quarter and year.
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)
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