AI demand prompts big growth at Foxconn
The world’s largest contract electronics maker reported record fourth-quarter revenue yesterday, driven by strong demand for artificial intelligence products (Amelia Caley writes).
Revenue for Foxconn, Nvidia’s biggest server maker and Apple’s top iPhone assembler, jumped 22 per cent from the same quarter the previous year to 2.6028 trillion Taiwanese dollars ($82.73 billion).
The Taiwan-based company is the world’s largest contract electronics manufacturer, assembling Apple’s iPhone and making the servers that hold chips in data centres. It has emerged as a key player in AI as companies race to build infrastructure for the technology. Its share price rose 25 per cent across 2025, following a 76 per cent rise the previous year.
“Revenue in the fourth quarter of 2025 achieved strong growth both quarteron-quarter and yearon-year, exceeding our expectation of significant growth, causing a high base for the first quarter,” the company said in a statement.
The growth was driven by strong performance in Foxconn’s cloud and networking products division, led by booming demand for AI products, while its smart consumer electronics segment, which includes iPhones, posted a slight revenue decline due to unfavourable exchange rates.
In December alone, Foxconn posted revenue of T$862.86 billion, up 31.77 per cent annually and a record for that month.
Foxconn, formally called Hon Hai Precision Industry, does not provide numerical forecasts.
It will report fourth-quarter earnings in March. It said it expected earnings to be near the upper end of the past five-year range thanks to the continued rise in AI rack shipments, despite entering the “traditional off-season” some of its products.
Foxconn signed a partnership with OpenAI in November to collaborate on designs for nextgeneration AI infrastructure hardware. In May it partnered with Nvidia and the Taiwanese government to provide infrastructure to a major AI factory in Taiwan.
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