"Foxconn’s Q3 2025 profit jumped 17% year-over-year, led by skyrocketing AI server demand that has now surpassed iPhone production as the company’s main growth engine."
Foxconn’s latest earnings report confirms a major shift in the global manufacturing landscape — from smartphones to servers. The Taiwanese tech giant’s third-quarter profit in 2025 soared by 17% year-over-year, largely powered by booming AI server demand from clients like Nvidia, Amazon, and Meta.
📈 Q3 2025: AI Takes the Lead
Foxconn, officially known as Hon Hai Precision Industry, reported a net profit of NT$57.67 billion ($1.89 billion) for July–September 2025 — exceeding analyst forecasts. The company’s total quarterly revenue climbed to NT$2.06 trillion ($67.7 billion), an 11.3% increase compared to last year.
Executives project even stronger momentum in the fourth quarter, forecasting a 15% sales jump as AI-related demand shows no signs of slowing down.
🤖 AI Servers Outshine iPhones
For the first time ever, Foxconn’s cloud and networking division — mainly consisting of AI servers — contributed 42% of total revenue, overtaking its traditional smart consumer electronics segment (which includes iPhones).
AI server sales skyrocketed over 60% year-over-year in Q2 and are estimated to have surged up to 170% in Q3, driven by growing orders from hyperscale cloud providers building next-gen data centers.
| Division | Revenue Share | Growth (YoY) |
|---|---|---|
| Cloud & Networking (AI Servers) | 42% | +170% |
| Smart Consumer Electronics | 39% | +5% |
| Components & Others | 19% | +12% |
🌍 Global Expansion Beyond China
While Foxconn continues iPhone assembly in China, it’s increasingly diversifying manufacturing operations. About 35% of total production now happens outside China. The company has ramped up investments in India, Mexico, and the United States.
- India: iPhone manufacturing through expanded partnerships with Tata Electronics.
- Mexico: Assembly for North American data center components.
- U.S. (Texas & Wisconsin): Dedicated AI server factories for Nvidia, including a new smart factory in Houston using NVIDIA Omniverse and autonomous robots.
🔄 Industry-Wide Transformation
Foxconn’s transition mirrors a broader trend among Taiwanese Original Design Manufacturers (ODMs). Peers such as Wistron and Quanta have also reported 65%–90% year-to-date revenue growth fueled by AI infrastructure demand.
Currently, Foxconn holds roughly 40% of the global market share for both general-purpose and AI servers — a dominant position in the rapidly expanding AI ecosystem. Chairman Young Liu continues to advocate for partnerships and innovations, recently engaging with OpenAI’s Sam Altman on future AI manufacturing strategies.
“Foxconn’s pivot to AI hardware shows how the entire tech manufacturing industry is being redefined by artificial intelligence,” said analysts from Economic Times.
💬 What This Means for the Future
Foxconn’s deep integration into AI hardware manufacturing signals a long-term transformation. As global AI adoption accelerates, server production could outpace traditional device manufacturing — marking a new era for the world’s largest contract electronics maker.
🧠 FAQs
1. Why is Foxconn focusing on AI servers now?
Demand for AI servers has surged globally due to rapid data center expansion and the growing need for hardware that supports AI model training and inference.
2. Who are Foxconn’s biggest AI clients?
Foxconn supplies AI servers and infrastructure components for Nvidia, Amazon, Meta, and OpenAI.
3. Is Foxconn moving production away from China?
Yes. Around 35% of Foxconn’s production now occurs outside China, with large-scale operations in India, Mexico, and the U.S.
