Foxconn, owned by Hon Hai Precision Industry (OTC:HNHPF), the prominent supplier for Apple Inc. (NASDAQ:AAPL), has seen its AI server division overtake iPhone assembly as its primary business.
AI Servers Now Outshine iPhone Assembly At Foxconn
Foxconn’s Cloud & Networking Products division has, for the first time, outpaced its Smart Consumer Electronics division, which oversees iPhone assembly, in terms of revenue. In the second quarter of 2025, the Cloud & Networking division’s revenue surged by 47% year-over-year to NT$731.8 billion ($24.32 billion), surpassing the NT$634.5 billion ($21.08 billion) generated by Smart Consumer Electronics.
AI servers now account for over half of cloud revenue, after posting more than 60% growth in the second quarter. Foxconn expects AI server revenue to surge 170% year-over-year in the third quarter, fueled by rising …