CREDIT: CNBC
Taiwan-based Foxconn, the world’s largest contract electronics manufacturer, posted a 27% year-over-year increase in operating profit for the second quarter of 2025, driven primarily by its expanding artificial intelligence (AI) server business, CNBC reports.
The company reported revenue of NT$1.79 trillion ($59.73 billion), in line with analyst estimates, while operating profit reached NT$56.6 billion, surpassing forecasts of NT$49.8 billion. Net profit came in at NT$44.36 billion, exceeding expectations of NT$38.81 billion.
Traditionally known as the primary manufacturer of Apple’s iPhones, Foxconn is now leveraging its consumer electronics expertise in the AI sector. Its AI server products, designed for high-performance computing workloads, now represent 41% of total revenue, surpassing smart consumer electronics for the first time, which accounted for 35%. The company has partnered with U.S. AI chip leader Nvidia to accelerate growth in this segment.
Looking ahead, Foxconn forecasts that its AI server business will continue to drive expansion, with projected revenue growth exceeding 170% year-over-year for the current quarter. The company also anticipates overall revenue growth in the third quarter but remains cautious amid evolving global political and economic conditions.
In strategic moves, Foxconn recently acquired a stake in industrial motor maker TECO Electric & Machinery to support AI data center development. The company is also exploring expansion into electric vehicle assembly and semiconductor manufacturing.
However, potential U.S. tariffs could impact Foxconn’s outlook. To mitigate tariff risks, Foxconn has shifted much of its final iPhone production for the U.S. market to India. The company’s subsidiary, Foxconn Technology Co., plans to invest $1 billion in the U.S. over the next decade as part of a North American expansion strategy.
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