Foxconn Targets 50% AI Server Market Share via OpenAI Deal

Hon Hai Technology Group, commonly known as Foxconn, is pursuing a strategy to capture 50% of the global AI server market, increasing its current share from approximately 40%. Chairman Young Liu expects AI infrastructure to generate 60% to 65% of the company's revenue over the next three to five years. To achieve this, the company is expanding its manufacturing footprint in the United States, specifically focusing on high-margin AI server racks and data center equipment to offset domestic production costs.

On October 30, during an annual technology event in Taipei, Liu announced a new collaboration with OpenAI following meetings with CEO Sam Altman. This partnership builds on a previous agreement to design and engineer AI hardware and data-center racks. While production capacity is fully booked for at least 18 months due to demand from cloud providers, Liu cautioned that the company must manage its spending to avoid overinvestment.

Simultaneously, Foxconn Industrial Internet has deployed over 10 humanoid robots at facilities in Houston, Texas. These robots utilize Nvidia's GR00T foundation model for lifting and assembly tasks. The Houston site continues to expand its AI server manufacturing to support Foxconn's position as the largest AI server maker for Nvidia, with the cloud and networking segment already accounting for 51% of second-quarter revenue.