Hon Hai Precision Industry Co (鴻海精密) yesterday posted a 25 percent rise in revenue during the first two months of this year, quickening from last year in a reflection of expanding demand for artificial intelligence (AI) computing.
The main supplier of Nvidia Corp AI servers and Apple Inc iPhones, also known as Foxconn Technology Group (富士康科技集團), reported sales of NT$1.1 trillion (US$33.5 billion) for the two months. That’s an acceleration from the 11 percent growth pace it clocked last year. Analysts on average project a revenue increase of 22 percent to NT$1.6 trillion for the first quarter.
The quickening follows Nvidia’s disclosure last week of US$11 billion in quarterly revenue from its most advanced Blackwell chip, which it called “the fastest product ramp” in the company’s history. Those results helped ease concerns about delays in Blackwell-based AI servers.
Photo: Ann Wang, Reuters
Hon Hai, which ships electronics to the rest of the world from giant production bases in China, is grappling with uncertainty surrounding US President Donald Trump administration tariffs and the sustainability of the AI boom. While big tech firms from Microsoft Corp to Amazon.com Inc have pledged to keep spending to keep pace with a revolutionary technology, Chinese start-up DeepSeek’s (深度求索) rise has spurred doubts about whether all that infrastructure expenditure is justified.
As Nvidia’s most important server maker, Hon Hai’s performance is a bellwether for the AI infrastructure build-out. Hon Hai expects strong year-on-year growth for the first quarter, it said in its monthly sales statement.
Hon Hai has been expanding its investments in the US to make more AI servers there. Last week Apple said it will partner with Foxconn to begin producing servers that power Apple Intelligence in Houston later this year.
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