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2h ago

Foxconn’s AI Server Business Surpasses iPhone Revenue

Leveraging deep Nvidia ties, the group plans factories in Texas and Mexico to support a projected 170% surge in AI server revenue in the third quarter.

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

Overview

  • Cloud and networking products, including AI servers, accounted for 41% of Foxconn’s revenue in Q2, overtaking the 35% share from consumer electronics.
  • Foxconn now holds roughly 40% of the global market in both general-purpose and AI servers, making it Nvidia’s largest server manufacturer.
  • The company forecasts AI server revenue to climb more than 170% year-on-year in Q3, driven by robust demand from hyperscale data-centre clients.
  • A partnership with Nvidia dating back to 2002 and early work on cloud-service servers since 2009 laid the foundation for its AI-infrastructure strength.
  • New manufacturing plants in Houston and Mexico have been approved to meet U.S. customer needs and align with Nvidia’s multibillion-dollar investment plan.