Foxconn profit jumps 35% on AI server demand

Foxconn reported a 35 percent rise in second-quarter net profit on Wednesday, helped by demand for artificial intelligence servers used in data centres.

The Taiwanese company, officially Hon Hai Precision Industry, said net profit for April-June reached NT$59.97 billion, or $1.86 billion. Revenue for the quarter reached NT$2.53 trillion, up 41 percent from a year earlier.

The profit figure exceeded the NT$58.38 billion estimate in a Bloomberg survey of analysts.

Foxconn said AI infrastructure was driving growth. The company has expanded beyond assembling low-margin iPhones into making AI servers for US tech company Nvidia, as well as electric vehicles and robots.

Rotating CEO Michael Chiang told an analyst briefing that Foxconn was seeing very strong customer demand for AI. He said the company expected significant quarter-on-quarter growth and strong year-on-year growth in AI-related business operations, and that the outlook for next year was also very positive despite a rapidly changing external environment.

Governments and technology companies are spending large sums on data centres that can train and run AI tools such as chatbots, image generators and agents that execute tasks. Foxconn makes servers used in those data centres.

Chiang said Foxconn's capital expenditure would continue increasing in 2027 as the company strengthens its global manufacturing footprint and automation deployment. He said that includes capacity expansion in Taiwan, the United States, Mexico and Vietnam.

Chiang also said Foxconn would expand research and development and manufacturing capabilities in Texas, Wisconsin, Ohio and California, as US President Donald Trump pressures high-tech companies to have more manufacturing capacity on US soil.