Foxconn Chairman Young Liu cautioned that a prolonged U.S.-Iran conflict would raise global oil and raw material costs, potentially pushing crude to $100 a barrel. Speaking at the company's New Taipei headquarters, Liu stressed that while current fallout for the world's largest electronics maker is limited, extended hostilities would eventually affect all industries. He expressed hope for a swift resolution to the war.

Liu's remarks highlight Foxconn's pivotal role as the primary assembler of AI servers for Nvidia and other tech giants. The company is riding a wave of record revenue from artificial intelligence demand, creating a stark contrast with the geopolitical risks that could inflate its production expenses. U.S. firms like Microsoft have also been building regional AI hubs in the UAE, underscoring the sector's sensitivity to Middle East stability.

The warning arrives just ahead of Foxconn's March 16 fourth-quarter earnings report, where the company will provide its updated outlook. Investors will parse the results for signs of how supply chain stressors and potential energy inflation might temper the anticipated boom in AI hardware through 2026, a year Liu separately described as "very good" for the firm.