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4w ago

Foxconn’s AI Server Business Overtakes iPhone Assembly in Q2 2025

Years of collaboration with Nvidia positioned the company to capitalize on the global buildout of AI data centers.

Young Liu, Chairman of Hon Hai Technology Group (Foxconn), delivers a keynote speech at Computex in Taipei, Taiwan May 20, 2025. REUTERS/Ann Wang/File Photo
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Terry Gou, founder and chairman of Foxconn, speaks at the World Intelligence Congress in Tianjin, China

Overview

  • Cloud and networking revenue rose 47% year over year to NT$731.8 billion in the second quarter, surpassing NT$634.5 billion from smart consumer electronics and accounting for 41% of total revenue versus 35%.
  • Foxconn says it now holds nearly 40% market share in both general‑purpose servers and AI servers.
  • The company forecasts AI server revenue growth of more than 170% year on year in the third quarter of 2025.
  • Production expansion includes planned factories in Houston, Texas, and in Mexico to build AI servers for Nvidia as part of the chipmaker’s U.S. investment plans.
  • Taiwan’s hardware makers are pivoting to servers, with Wistron’s January–July revenue up 92.7% and Quanta’s up 65.6%, and industry estimates placing Taiwan at about 80% of global server shipments and over 90% of AI servers.