Hon Hai Precision Industry (Foxconn) recorded a 27% surge in profit in the Q2 period that ended in June. It acknowledged that the growth came from accelerating sales in its key AI server venture.
The company reported a net income of NT$44.36 billion ($1.5 billion) for the period, surpassing an average analyst projection of NT$36.14 billion ($1.2 billion). It had previously reported a 16% increase in revenue for the period, aligning with market expectations.
Foxconn expects continued growth through next year
Foxconn’s operating profit for the quarter came at NT$56.60 billion, a 27% year-over-year increase and better-than-expected estimates of NT$50.49 billion. It also reported NT$3.19 earnings per share for the period, which was higher than last year’s NT$2.53 and above the projected NT$2.79.
The demand for the Taiwanese manufacturing giant’s AI server infrastructure led to a 91% year-on-year ($1.38 billion) increase in net profit in Q1 2025. The sector’s revenue is expected to reach $30.35 billion by the end of the year, fueled by collaborations with Nvidia .
Yang revealed that the company projects that AI server revenue will surge by more than 170% YoY. It also expects rack shipments to grow threefold quarter-over-quarter, driven by stable production and strong customer demand.
Hon Hai recorded a net income of NT$86.47 billion and revenue of NT$3.44 trillion for the first half of 2025, representing a 20% YoY increase. Its operating profits came at NT$103.10 and EPS of NT$6.23 for the same period.
The company, also known as Foxconn, also revealed that there will be a significant growth rate in 2025, driven by strong demand for AI servers and stable mass production. The firm still expects Q3 sales to grow sequentially on-quarter and on-year. Foxconn’s current rotating CEO, Kathy Yang, said the third quarter will see significant growth compared to the previous quarter due to the upcoming traditional peak operating season for the company.
The firm said that the primary driver of growth in the second half of the year will come from cloud, networking, and consumer electronics. As for the full year, Foxconn still expects significant growth, but it is a bit vigilant due to changes in geopolitics, tariffs, and global exchange rates.
Hon Hai’s growth came amid abrupt and unpredictable geopolitical shifts as the U.S. imposed tariffs that affected the industry. The heightened U.S.-China trade war pushed the company to cut its full-year revenue guidance in May.
Hon Hai bets on diversifying AI server infrastructures
Hon Hai has also shifted from electronics manufacturing to the AI infrastructure market, projecting that AI server revenue will surpass smartphone-related earnings for the first time and exceed a trillion New Taiwan dollars. It is also planning to diversify its AI server infrastructure and build facilities in the U.S., Mexico, and Vietnam. It wants to capitalize on U.S. manufacturing incentives and counter China-based supply chain risks.
Foxconn also championed its recent strategic alliance with TECO Electric & Machinery, saying that it strengthens its AI infrastructure footprint. It aims to accelerate the development of a more comprehensive and competitive modular data center (MDC).
“Time-to-market is key in the global super-computing race. Modular design is gaining popularity. As AI data centers grow in size and demand ramps higher, teaming up with TECO means both companies are able to level up and rapidly deliver comprehensive, vertically-integrated solutions to our customers.”
-Young Liu, Chairman of Foxconn.
As previously reported by Cryptopolitan, the company agreed to sell its former car manufacturing plant in Lordstown, Ohio, for $375 million. It plans to use the site for a wide array of products that will add to its long-term objectives.
Foxconn revealed that it will revitalize its Ohio facility to manufacture cloud and networking products. It said the initiative is meant to further strengthen its position in the global AI industry.
