Foxconn is expected to post an 11% year-on-year profit rise in Q2, driven by strong demand for AI servers.

The world’s largest contract electronics maker, also known as Hon Hai Precision Industry, likely recorded T$38.8 billion (US$1.3 billion) net profit from April to June 2025, based on LSEG estimates.

Foxconn makes iPhones for Apple and servers for Nvidia, with the bulk of iPhones sold in the US now produced in India, while most iPhones overall are still assembled in China.

Last month, Foxconn reported record Q2 revenue but noted ongoing risks from geopolitical tensions and currency fluctuations.

The company is expanding its manufacturing footprint with new factories in Mexico and Texas for Nvidia’s AI servers, and recently agreed to sell a former car factory in Ohio for US$375 million, but will continue some operations there.

Foxconn also formed a partnership with TECO Electric & Machinery to build data centres.

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🔗 Source: Reuters

🧠 Food for thought

1️⃣ Foxconn’s AI server success reflects decades of mastering the manufacturing-as-a-service model

Foxconn’s current AI server boom for Nvidia represents the latest chapter in a remarkable transformation from a small plastic parts maker to the world’s most sophisticated electronics manufacturing partner.

The company’s revenue exploded from just $500 million in 1996 to over $100 billion by 2010—a 46% compound annual growth rate—by perfecting what became known as the Electronics Manufacturing Services (EMS) model 1.

This approach allowed Foxconn to become deeply integrated with major tech companies’ product development cycles rather than simply fulfilling basic manufacturing contracts.

The pattern repeated across multiple technology waves: Foxconn became the world’s largest mobile handset EMS provider by 2005 with $6.3 billion in revenue from Motorola and Nokia partnerships, then manufactured over 500 million iPhones since Apple’s 2007 launch 1.

Each time, Foxconn’s advantage came from offering “one-stop solutions” that handled everything from component sourcing to final assembly, allowing clients to focus on design and marketing while Foxconn managed the complex manufacturing logistics.

Today’s AI server manufacturing for Nvidia follows this exact playbook. Foxconn isn’t just assembling components but likely managing the entire supply chain for specialized AI hardware, explaining why they can achieve rapid scaling that matches surging AI demand.

This manufacturing expertise, built over decades of partnerships with companies like Dell, Apple, and Sony, positions Foxconn to capitalize on AI infrastructure buildouts in ways that pure-play manufacturers cannot match.

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