[Alpha Biz= Kim Jisun] Taipei, August 18, 2025 – Hon Hai Precision Industry Co. (Foxconn), the world’s largest electronics contract manufacturer, has reduced its reliance on Apple by capitalizing on surging global demand for artificial intelligence (AI) servers.



For the second quarter, Foxconn reported that sales from cloud and networking products, including AI servers, accounted for 41% of total revenue, surpassing the 35% contribution from smart consumer electronics such as Apple iPhones for the first time. Just a year earlier, the figures stood at 27.5% and 48.2%, respectively.



Fueled by the AI server boom, Foxconn posted record quarterly revenue and operating profit of NT$1.79 trillion (approx. USD 83 billion) and NT$44.4 billion (approx. USD 2.05 billion). The company expects AI server revenue in the third quarter to grow more than 170% year-on-year.



Analysts attribute the shift to Chairman Young Liu’s strategic push since 2019 to diversify beyond Apple dependency by investing in AI servers, semiconductors, and other growth sectors. Foxconn had established partnerships with major customers, including NVIDIA, well before the AI surge sparked by ChatGPT in 2022. The company has been producing NVIDIA graphics cards and reference designs since 2002 and began building general-purpose servers for data centers in 2009.



Today, Foxconn is the world’s largest supplier of NVIDIA servers, commanding roughly 40% market share in both AI servers and general-purpose servers.

 

 

 

 

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