Foxconn reported a stellar second quarter for 2025, as the world’s top contract electronics manufacturer continues to pivot towards artificial intelligence (AI) infrastructure and away from its traditional consumer electronics dominance.
Operating profit for the quarter surged 27% year-on-year, coming in at NT$56.6 billion, well ahead of LSEG’s SmartEstimates of NT$49.77 billion. Net profit reached NT$44.36 billion, also surpassing consensus expectations.
Quarterly revenue totaled NT$1.79 trillion (approx. $59.7 billion), marking a 16% increase from a year earlier and landing in line with forecasts.
Notably, Foxconn’s AI server segment contributed 41% of revenue, surpassing its long-established smart consumer electronics—including Apple iPhones—for the first time, which accounted for 35%.
The shift signals Foxconn’s effective execution of its diversification strategy, leveraging its relationship with major AI chipmaker Nvidia to become a key supplier for AI data center infrastructure.
Looking ahead, Foxconn projects revenues from its AI server business to soar more than 170% year-on-year in the current quarter, underpinning confidence in the sustainability of its growth momentum.
Management also affirmed expectations for overall revenue expansion in the third quarter, while emphasizing the need to closely watch the evolving global economic and geopolitical environment.
In a strategic push to deepen its AI footprint, Foxconn recently acquired a stake in industrial motor company TECO Electric & Machinery, aiming to collaborate on the construction of next-generation data centers. The company is also making aggressive inroads into electric vehicles and semiconductor manufacturing.
However, mounting trade tensions could complicate Foxconn’s global strategy. Ongoing U.S. tariffs—most recently a 20% surcharge on Taiwanese imports—pose new challenges, alongside President Donald Trump’s threat of a 100% tariff on foreign-built semiconductors destined for the U.S.
In anticipation, Foxconn has ramped up production in India for the U.S.-bound iPhones and unveiled a $1 billion North American investment plan, through its Foxconn Technology subsidiary, over the coming decade.
