According to a statement released on Sunday, shipments of AI racks are projected to continue their upward trajectory this quarter, coinciding with the peak season for information and communications technology products. The company expects overall operations to grow both quarter-on-quarter and year-on-year.
Hon Hai, also known as Foxconn, has positioned itself as a significant player in AI hardware by assembling servers equipped with Nvidia accelerators. Major tech companies such as Alphabet Inc., Amazon.com Inc., Meta Platforms Inc., and Microsoft Corp. are allocating approximately $725 billion for AI investments this year, despite concerns about overcapacity and ongoing challenges in monetizing the technology.
There are rising worries about the rapid construction of energy-intensive data centers, especially following the onset of conflict in the Middle East, which has strained global shipping routes and impacted gas prices.
Hon Hai’s revenue reached NT$2.51 trillion ($79 billion) in the quarter ending in June, surpassing analyst forecasts of NT$2.37 trillion. The surge in sales of AI-related products offset a minor decline in demand for consumer electronics and computing items.
The Taiwanese firm projected strong sales growth in 2026 in March, driven by ongoing AI momentum. A substantial portion of its revenue comes from assembling Apple Inc.’s iPhones and MacBooks, positioning it to benefit from positive market reception of the latest iPhone 17 product line.
However, like many electronics manufacturers, Hon Hai is contending with a shortage of memory chips that are crucial for a diverse array of products, including smartphones, PCs, and servers.
Executives have indicated that this shortage should not significantly hinder demand for the premium handsets and computer products produced for their major clients.
