TAIPEI, July 5 Reuters Taiwan39;s Foxconn, the world39;s largest contract electronics maker, raised its fullyear business outlook on Monday thanks to strong sales of smartphones and servers despite concerns of slowing demand due to rising inflation.

Like other global manufacturers, the Taiwanese firm has grappled with a severe shortage of chips, which has hurt smartphone production including for its major client Apple, partly due to COVID19 lockdowns in China.

But the company said in a statement late on Monday that June sales jumped 31 from a year earlier to a record high for the month, thanks to appropriate supply chain management and rising sales of consumer electronics. Smartphones make up the bulk of its revenue.

Foxconn39;s betterthanexpected June sales come at a time when investors are concerned about slowing tech demand during a downturn in major markets due to high inflation and the war in Ukraine.

Chip stocks across the world tumbled on Friday after memory chip maker Micron Technology Inc forecast on Thursday significantly worsethanexpected revenue for the current quarter and said the market had weakened considerably in a very short period of time.

Foxconn said it was optimistic about its business in the third quarter, adding it could see significant growth compared with a year earlier.

For 2022, Foxconn said the outlook has improved compared with earlier expectations for no growth, without providing details.

The company, formally called Hon Hai Precision…