Foxconn posts 35% profit jump as AI server demand soars
Taiwan's Foxconn announced a 35% rise in second-quarter net profit, driven by strong demand for AI servers used in data centres.
Foxconn, formally Hon Hai Precision Industry, disclosed a second-quarter net profit of $59.97 billion New Taiwan dollars, a 35% increase over the prior year and above Bloomberg’s consensus estimate of $58.38 billion. The surge reflects booming orders for artificial-intelligence servers that power data-centre workloads such as chatbots and image generators. In its earnings statement, the firm highlighted continued "strong" revenue growth and noted ongoing projects to build AI server factories in Mexico and Texas for Nvidia, while moving most U.S. iPhone assembly to India.
The company also mentioned plans to broaden its electric-vehicle manufacturing footprint. Foxconn’s stock rose 2.7% on the day, adding to a 17% gain for the year, though it still lagged the broader Taiwan index. The results underscore the expanding role of Taiwanese manufacturers in the global AI supply chain.
Why it matters
The earnings show how AI hardware demand is reshaping Taiwan's leading electronics maker and its global supply chain.
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