Foxconn, the globe’s preeminent contract electronics producer, reported a 17% increase in third-quarter profit, as the Taiwanese manufacturing giant capitalises on swelling demand for artificial intelligence (AI) server infrastructure.
For the three months ending September, Foxconn, formerly known as Hon Hai Precision Industry, posted net profit of NT$57.67 billion, outpacing the NT$50.41 billion expected by analysts polled by LSEG SmartEstimates. Quarterly revenue came in at NT$2.06 trillion ($66.29 billion), in line with market forecasts.
Best known as the leading assembler of Apple’s iPhones, Foxconn has been actively diversifying its portfolio, with an ongoing transition into high-growth segments such as AI. The firm now manufactures advanced server racks tailored for AI workloads, and secured a strategic partnership with the U.S. AI chip leader Nvidia.
Foxconn’s server manufacturing business is experiencing a robust expansion, propelled by high demand and the company’s dominance in global contract manufacturing, noted Ivan Lam, senior analyst at Counterpoint Research.
Foxconn has reallocated resources from mature consumer electronics segments toward more lucrative AI-driven opportunities, said Lam. This pivot, He observed, is already paying dividends for Foxconn, even as the company reduces its traditional consumer electronics business to build a more sustainable growth trajectory.
While ongoing challenges including component price volatility, currency fluctuations, and logistical constraints continue to pose risks to profit margins, Lam expects Foxconn to deliver solid results for the fourth quarter as its transformation gains further traction.
