TLDR: Foxconn, the world’s largest contract electronics manufacturer, reported a 17% increase in its third-quarter net profit, reaching NT$57.67 billion (approximately US$1.9 billion). This significant growth, which surpassed analyst forecasts, was primarily fueled by strong global demand for Artificial Intelligence (AI) servers, further solidifying the company’s strategic shift beyond traditional consumer electronics.
TAIPEI – Foxconn, formally known as Hon Hai Precision Industry, announced on Wednesday, November 12, 2025, a substantial 17% year-on-year increase in its third-quarter net profit, driven by an unprecedented surge in demand for Artificial Intelligence (AI) servers. The Taiwanese tech giant, renowned as the world’s largest contract electronics manufacturer and a primary assembler of Apple iPhones, reported a net profit of NT$57.67 billion (approximately US$1.9 billion or S$2.42 billion) for the July-to-September period. This figure comfortably exceeded average analyst estimates, which ranged from NT$50.4 billion (LSEG) to NT$50.95 billion (Bloomberg News survey).
The company’s revenue for the third quarter also saw an impressive rise, climbing 11% year-on-year to NT$2.06 trillion (US$66.29 billion). This robust performance underscores Foxconn’s successful diversification strategy, as its cloud and networking business, which encompasses AI servers, has now surpassed smart consumer electronics as its largest revenue contributor for the second consecutive quarter.
Foxconn’s pivot towards high-growth AI segments is a key factor in its recent financial success. The company is a major supplier of AI servers for leading U.S. technology firms, including Nvidia and Amazon. This strategic shift is reducing its dependency on lower-margin smartphone assembly, even as it continues to be Apple’s top iPhone assembler.
Looking ahead, Foxconn anticipates continued strong growth. The company forecasts significant year-on-year revenue growth in the fourth quarter, with AI server sales expected to increase further quarter-on-quarter. For the full year, Foxconn reiterated its guidance for significant revenue growth, consistent with its August projections, though it refrains from providing specific numerical forecasts.
To bolster its position in the burgeoning AI market, Foxconn’s board recently approved a NT$42 billion investment for acquiring equipment for a new AI computing cluster and supercomputing center. Furthermore, the company announced a collaboration with Nvidia earlier this year to develop a supercomputing facility in Taiwan, powered by 10,000 Nvidia Blackwell chips. Cumulative AI server revenue had already reached NT$1 trillion by the end of September, supported by ramped-up rack shipments and manufacturing advances.
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While the global AI market is booming, with Gartner projecting AI-related spending to reach approximately US$1.5 trillion by 2025 and over US$2 trillion in 2026, concerns about a potential ‘AI market bubble’ persist. Despite these broader market considerations, Foxconn is actively expanding its global manufacturing footprint for AI servers, with new facilities being established in Mexico and Texas. The company is also increasing iPhone production in India, with the bulk of iPhones sold in the United States now produced there.
