Foxconn Soars: AI Server Demand Propels Sales to 11% Growth
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- October 06, 2025
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Taipei, Taiwan – Hon Hai Precision Industry Co., the global manufacturing powerhouse better known as Foxconn and a critical partner to tech giants like Apple and Nvidia, has announced an impressive surge in its September sales. The company reported an 11% year-on-year increase, reaching a staggering NT$745.8 billion (approximately US$23.2 billion), a robust performance largely attributed to the insatiable global appetite for Artificial Intelligence (AI) servers and related components.
This significant leap marks a powerful rebound for the Taiwanese conglomerate, which had previously grappled with declines.
The strong performance signals a pivotal shift in market dynamics, with Hon Hai strategically positioned at the heart of the burgeoning AI hardware revolution. The company's September figures not only exceeded market expectations but also underscored the accelerating recovery in the broader technology sector, primarily fueled by AI-driven demands.
Hon Hai, the world's largest contract electronics manufacturer, provides essential components and assembly services for a vast array of products, from Apple's iPhones to sophisticated Nvidia AI server racks.
The surge in demand for cloud and networking products, particularly high-performance AI servers, was the primary catalyst for this exceptional growth. This segment saw remarkable strength, reflecting the ongoing global investment in advanced AI infrastructure by data centers and cloud service providers.
Beyond AI, the company also reported positive developments in its computing products segment, which includes laptops and desktops, as well as its consumer electronics business, encompassing smartphones and smart home devices.
While the consumer electronics market continues to navigate headwinds, the diversification of growth drivers within Hon Hai's portfolio demonstrates resilience and adaptability in a complex global economy.
Looking ahead, Hon Hai management expressed optimism for the third quarter, expecting performance to be "slightly better" than the second quarter, buoyed by the strong September results.
More crucially, the outlook for the fourth quarter remains robust, with the company anticipating continued growth driven by sustained demand for AI servers and cloud infrastructure. Analysts echo this positive sentiment, forecasting that Foxconn's AI server business could see over 40% year-on-year growth in 2024, solidifying its position as a key enabler of the AI revolution.
The company's strategic pivot extends beyond its core manufacturing prowess.
Hon Hai has been actively diversifying its investments into emerging technologies such as electric vehicles, semiconductors, and satellite communications, aiming to build new growth engines and reduce its reliance on traditional consumer electronics cycles. This foresight positions Foxconn not just as a manufacturing giant but as a forward-thinking innovator shaping the future of technology.
In essence, Hon Hai's impressive sales figures are a clear indicator of the profound impact AI is having on the global technology landscape.
As companies worldwide rush to build out their AI capabilities, the demand for the underlying hardware — much of it supplied by Foxconn — will only intensify, cementing the company's crucial role in powering the next wave of technological advancement.
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