Foxconn Hon Hai Technology Group signage during the Nvidia GPU Technology Conference (GTC) in San Jose, California, US, on Thursday, March 20, 2025.
David Paul Morris | Bloomberg | Getty Images
Taiwan’s Foxconn, the world’s largest contract electronics maker, reported Thursday that its second-quarter operating profit rose 27% year over year, on the strength of its growing artificial intelligence server business.
Here’s how Foxconn did in the second quarter of 2025 compared with LSEG SmartEstimates, which are weighted toward forecasts from analysts who are more consistently accurate:
- Revenue: 1.79 trillion New Taiwan dollars ($59.73 billion) vs. NT$1.79 trillion
- Operating profit: NT$56.596 billion vs. NT$49.767 billion
Second quarter revenue grew 16% from last year, coming in line with LSEG’s SmartEstimates. The company’s net profit for the second quarter came in at NT$44.36 billion, beating expectations of NT$38.81 billion.
Foxconn, formally called Hon Hai Precision Industry, is the world’s largest manufacturer of Apple’s iPhones, and has been looking to replicate its success in consumer electronics in the world of AI.
The firm manufactures server racks designed for AI workloads and has become a key partner to American AI chip darling Nvidia.
Sales of Foxconn’s server products made up the lion’s share of revenues in the second quarter at 41%, surpassing its smart consumer electronic products for the first time, which accounted for 35%.
In an earnings report, the company forecasted that its AI server business would continue to drive growth into the current quarter, with revenue expected to increase by over 170% year over year.
Foxconn said earlier this month that it expected overall revenue to grow further in the third quarter, but noted that the impact of “evolving global political and economic conditions” would be closely monitored.
At the end of July, Foxconn announced that it was taking a stake in industrial motor maker TECO Electric & Machinery in a strategic partnership to build more AI data centers.
The company has also shown its willingness to expand into new areas, including the assembly of electric vehicles and the manufacturing of semiconductors.
However, U.S. President Donald Trump’s global tariffs could impact Foxconn’s outlook this year. In response to Trump’s tariff threats, the company has already moved most of its final production of made-for-the-U.S. iPhones to India.
Taiwan has been hit with a 20% “temporary tariff” from the U.S., with trade negotiations said to be ongoing.
Last week, Trump also said he would impose a 100% tariff on imports of semiconductors and chips, but not on companies that are “building in the United States.”
While the details of these tariffs remain unclear, Foxconn Technology Co, a metal casing supplier owned by Hon Hai Precision Industry, announced plans to invest $1 billion in the U.S. over the next ten years as part of its North American expansion strategy, according to local media reports.