 |
Foxconn's revenue surged thanks to demand for components in the AI field. Photo: Bloomberg . |
Revenue of Hon Hai Precision Industry (Foxconn), Nvidia's server manufacturing partner, continued to grow strongly in October, thanks to sustainable demand for products serving the AI field.
Foxconn's October revenue reached NT$895.7 billion ( US$29 billion ), up 11.3% year-on-year, according to its latest report. This increase is equivalent to the growth rate in the third quarter, and the company's sales are expected to increase by about 15% in the fourth quarter of 2025, ending in December.
Foxconn is a key supplier in the production chain of servers that house AI chips for data centers, a pillar of the current wave of global technology investment. The company has benefited from growing demand from leading technology corporations such as Meta and OpenAI, as they ramp up spending on AI infrastructure.
However, analysts also note that most of these companies have yet to reap significant returns from their huge investments in the sector.
Aside from AI, Foxconn still relies heavily on Apple, its biggest customer. Foxconn is currently the main iPhone assembler, contributing the majority of the group's revenue. However, in the context of slowing global smartphone demand, the Taiwan-based company is turning heavily to AI to find new growth drivers.
The company is also expanding its manufacturing operations outside Asia. Foxconn executives said the company is increasing its AI server production capacity in the US, particularly in Wisconsin and Texas, where the company already has facilities. The expansion is part of a strategy to strengthen Foxconn’s position in the global supply chain while also meeting growing domestic demand in the US market.
Hon Hai is expected to announce its Q3/2025 business results in November. Observers say the results will more clearly reflect the impact of the AI boom as well as Foxconn's diversification strategy in the context of a slowing traditional consumer electronics market.
Source: https://znews.vn/doi-tac-cua-nvidia-thang-lon-post1600464.html
Comment (0)