Foxconn's AI Server Boom Drives 17% Profit Jump as OpenAI Partnership Takes Shape

Apple supplier Foxconn quarterly profit climbs 17% on AI boom

Apple supplier Foxconn's third-quarter profit climbed 17 per cent from a year earlier, as the world's largest contract electronics manufacturer benefits from the AI build-out. Net profit rose to NT$57.7bn (US$1.9bn) in the three months to September 30 on NT$2tn in revenues. The world's largest electronics manufacturer produces a wide range of components and finished products including computers, industrial robots and electric vehicles for branded vendors. It is Nvidia's biggest server maker and has benefited from the boom in artificial intelligence as US tech giants, including Amazon, Microsoft and Alphabet, have invested heavily in data centres.

Foxconn confirms OpenAI partnership, doubling down on trillion-dollar compute race

Foxconn chairman Young Liu used the company's latest earnings call to deliver a message: artificial intelligence is no longer just a growth driver -- it is now the most decisive force shaping Foxconn's future. Liu said the company is preparing a deep partnership with OpenAI to support the world's fastest-growing demand for compute, and he promised that key details will be unveiled at Hon Hai Tech Day (HHTD) on November 21-22, 2025. Liu said Foxconn "will absolutely work with OpenAI, the leading player in the AI industry," citing CEO Sam Altman's ambition to build one gigawatt of compute capacity every week. At today's AI pricing curves, Liu said, that goal implies a recurring weekly market worth roughly US$50 billion -- an unprecedented scale that "is only just beginning." A relationship years in the making The partnership is not emerging in a vacuum. Altman made a low-profile trip to Taiwan in late September and early October 2024, meeting privately with Liu to discuss chip supply, compute infrastructure, and server-deployment roadmaps. Liu later confirmed the meeting and said he intends to hold further discussions with Nvidia CEO Jensen Huang as OpenAI's hardware requirements accelerate. Behind the scenes, Foxconn has already been closely linked to OpenAI's most ambitious infrastructure push: the Stargate Project, a multi-hundred-billion-dollar effort to build the United States' next generation of hyperscale AI data-center campuses. Oracle is the principal cloud provider for the project, and Foxconn is Oracle's largest AI-server supplier -- effectively placing the Taiwanese manufacturer at the hardware heart of Stargate. SoftBank's SB Energy is expected to provide portions of the power infrastructure, while Foxconn's former EV assembly site in Lordstown, Ohio, is being converted into a production base for data-center equipment. The repurposed facility signals Foxconn's direct entry into the US hardware supply chain for the project. Rising shipments and entrenched market share OpenAI's breakneck expansion has already lifted Foxconn's server shipments. Although competitors such as Quanta have increased supply, industry data shows Foxconn still maintains the largest share of AI-server output, benefiting from long-cycle demand tied to the Stargate buildout. Liu said the company's advantage is structural: Foxconn is one of the world's leading hardware developers for large-scale compute systems and a critical partner to customers racing to deploy GPUs, accelerators, networking gear, and power-delivery solutions at unprecedented speed. Preparing for the age of "physical AI" In Liu's view, the compute race is only at its beginning as AI evolves from narrow intelligence to AGI and eventually ASI. He said the shift from conversational models to autonomous AI agents -- and eventually "physical AI" -- will cause hardware demand to grow "explosively." Given this trajectory, Liu framed Foxconn as indispensable: "We will fully and comprehensively support our partners in achieving their compute-deployment goals," he said. Before closing the call, he urged investors to watch HHTD closely: "We will have OpenAI-related announcements at HHTD. Please stay tuned." Article edited by Jerry Chen

Foxconn sees AI-driven growth in 2026, teases OpenAI announcement (FXCOF:OTCMKTS)

Foxconn Technology (OTCPK:FXCOF) provided a bright outlook for next year, pointing to AI-related demand as a big driver of growth in 2026, and teased an announcement for next week with OpenAI (OPENAI). The company's third quarter revenue jumped 11% year-over-year to Foxconn Technology expects AI-related demand and strong AI server growth to drive its bright growth outlook for next year. AI servers led to a 300% quarter-over-quarter growth in shipments, raised AI server revenue to NT trillion-dollar scale ahead of schedule, and helped increase cloud and networking product revenue share. Foxconn identifies developments in the AI industry, geopolitical situation, economic trends, and monetary policy as critical external factors that could impact its future performance in AI.

Foxconn Profit Tops Estimates Amid Robust AI Server Business

Foxconn Technology Group reported better-than-expected net profit as the Nvidia supplier continued to ramp up AI server shipments thanks to the artificial-intelligence boom. The world's largest contract electronics maker posted a 17% gain in third-quarter net profit to 57.67 billion New Taiwan dollars, equivalent to US$1.86 billion. Analysts had expected NT$49.88 billion, according to a FactSet consensus. Revenue rose 11% from a year earlier to NT$2.059 trillion. The robust earnings come as the Taiwanese company, formally known as Hon Hai Precision Industry, sharpens its focus on higher-growth areas. Foxconn, which until recently was best known as an iPhone assembler for Apple, has consolidated its position in the AI supply chain, by making AI servers for U.S. tech giants including Amazon and Nvidia. Cloud and networking products--including AI servers--accounted for 42% of total revenue, remaining the company's largest business after surpassing smart consumer electronics for the first time the previous quarter. Foxconn said Wednesday that cumulative AI server revenue reached NT$1 trillion as of the end of September, after it ramped up rack shipments following major manufacturing and assembly breakthroughs. Investors have continued to snap up Foxconn's shares. The stock, up more than 35% so far this year, hit an all-time high in late October, after Chairman Young Liu said he met with OpenAI Chief Executive Sam Altman to discuss potential future collaborations. Its shares have also received a boost from tech giants' recent multibillion-dollar AI deals, which have had ripple effects across the semiconductor value chain. Foxconn said last month that its board approved a NT$42 billion investment plan to procure equipment to build an AI computing cluster and supercomputing center. In May, the company said it was working with Nvidia to build an AI supercomputing center in Taiwan with 10,000 Nvidia Blackwell chips. U.S. tariff uncertainty remains, however, casting a cloud over its business. Taiwan is still subject to a 20% reciprocal tariff, and President Trump has announced 100% tariffs on semiconductors unless companies invest in the U.S. In its earnings call after second-quarter results, Foxconn said that the company was expanding its AI server manufacturing capacity in Texas and Wisconsin due to the AI boom.