Foxconn Net Profit Jumps 35% on AI Server Demand

Hon Hai Precision Industry, known as Foxconn, reported a 35% year-over-year increase in second-quarter net profit to NT$59.97 billion, or approximately $1.86 billion. Revenue rose 41% to NT$2.526 trillion, marking the first time Cloud and Networking products accounted for more than half of the company's total revenue.

This growth stems from the expansion of the AI server business. The company expects AI server rack shipments to grow by a high double-digit percentage in the third quarter and more than double for the full year. Chairman Young Liu attributed this demand to cloud providers, governments, enterprises, and model developers, predicting that the infrastructure build-out will persist for three to five years.

While North American hyperscalers remain the primary drivers of growth, procurement pressure is shifting toward liquid-cooling capacity, high-bandwidth memory, and advanced chip packaging. This shift follows a trend toward diversified hardware configurations, including the use of proprietary silicon from companies such as AWS and Google.