AI Servers – Foxconn Reports Record Second-Quarter Sales Growth
AI Servers – Global demand for artificial intelligence servers helped Hon Hai Precision Industry Co., better known as Foxconn, post its strongest-ever second-quarter sales performance. The Taiwan-based electronics manufacturer said growth was broad-based across several business divisions during the April-June period.
AI infrastructure demand lifts quarterly revenue –
Hon Hai reported consolidated sales of NT$2.51 trillion, or about USD 78.35 billion, in the second quarter. The figure was 39.83 per cent higher than a year earlier and rose 18.02 per cent from the previous quarter, according to Focus Taiwan’s report.
The company said its cloud and networking business was a key contributor to the result, supported by sustained orders for AI-related products. Demand for data-centre equipment and AI server systems has increased as technology companies continue expanding their computing capacity.
Growth extends across core business units
While AI servers were a major driver, Hon Hai said other operations also recorded healthy gains. Its electronic components, computing products and smart consumer electronics divisions all posted notable year-on-year revenue growth during the quarter.
The manufacturer remains widely known as a key assembler of Apple iPhones, but its growing role in AI hardware has become increasingly important to its revenue mix. The company is estimated to hold roughly 40 per cent of the global AI server market.
June sales remain strong despite monthly decline
Hon Hai recorded NT$821.8 billion, around USD 27.1 billion, in consolidated sales in June. That was 52.11 per cent higher than the same month last year, although it was 4.38 per cent lower than May.
For the first six months of the year, the company’s consolidated sales reached NT$4.64 trillion, equivalent to about USD 153.1 billion. First-half revenue increased 34.99 per cent from the corresponding period a year ago.
Third-quarter outlook supported by seasonal demand
Hon Hai said it expects sales in the July-September quarter to rise both sequentially and from a year earlier. The company expects demand for AI server racks to remain firm, helping maintain momentum in its cloud and networking operations.
It also pointed to the traditional second-half peak season for the information and communications technology sector. Higher demand for consumer electronics and technology products typically supports production activity during this period.
Largan Precision reports quarterly sales decline
In contrast, smartphone camera lens supplier Largan Precision reported a sequential fall in second-quarter sales. The company posted consolidated revenue of NT$13.67 billion, or about USD 451 million, down 12.09 per cent from the first quarter.
Its June sales stood at NT$3.71 billion, around USD 122.4 million, representing a 10.46 per cent decline from a year earlier. Largan said the decrease was linked to customers rescheduling shipments.
First-half revenue remains higher year on year
Despite the June slowdown and lower quarterly sales, Largan’s first-half performance remained positive. Consolidated sales for the January-June period reached NT$29.21 billion, or approximately USD 964 million, up 11.26 per cent from the same period last year.
The contrasting results underline the different demand conditions affecting technology suppliers. Foxconn’s strong AI server business continues to support revenue growth, while smartphone-related component makers remain more dependent on customer shipment schedules and handset market demand.