Foxconn

the summary).Foxconn, traditionally a smartphone assembler, is now a key Nvidia partner, producing AI‑optimized server racks that drove a 26% YoY revenue rise to NT$844.3 bn (≈US$27 bn) in November. AI server sales offset a 6% monthly dip in consumer electronics, boosting Q3 profit 17% YoY. The firm launched a Taiwan AI manufacturing hub with Nvidia, invested in data‑center specialist TECO, and partnered with OpenAI on hardware. This pivot promises higher margins, greater capital spend, and geographic diversification, lifting its share price 26% YTD and positioning Foxconn as a central player in the expanding AI infrastructure market.

Foxconn is strategically pivoting towards AI, highlighted by new partnerships with OpenAI and Alphabet’s Intrinsic. The company aims to be a key AI hardware provider, expanding beyond iPhone assembly. OpenAI collaboration focuses on informing AI hardware design and U.S.-based manufacturing. Foxconn’s server business is now its top revenue generator, boosted by AI demand. They also showcased integration with Nvidia and plans for “AI factories.” Chairman Young Liu is confident in Foxconn’s role, stating all AI models and GPU players will require hardware support.

OpenAI and Foxconn are partnering to co-develop and manufacture AI data center components in the US. This aims to accelerate infrastructure deployment, secure domestic manufacturing, and address hardware bottlenecks. Foxconn will leverage its US facilities to manufacture power systems, networking, and cooling solutions, aligning with supply chain security goals. OpenAI’s CEO highlights this as a “generational opportunity” for US reindustrialization. This partnership is part of OpenAI’s broader strategy, involving significant investments and alliances to build AI infrastructure. However, Foxconn’s past US manufacturing ventures present cautionary lessons.

Foxconn reported a 17% year-over-year profit surge in Q3, driven by strong AI server demand. The company beat net profit estimates (NT$57.67B vs. NT$50.41B expected) while meeting revenue expectations. Foxconn is diversifying into AI infrastructure, partnering with Nvidia to manufacture high-performance server racks. The company anticipates continued growth, fueled by AI server shipments and ICT product demand, while also expanding into autonomous vehicles and energy-efficient AI data centers.

Foxconn Chairman Branden Cheng predicts AI will revolutionize not only industries like autonomous driving and cosmetics, but also everyday experiences. He believes AI will enhance the taste of Moutai and improve the effectiveness of cosmetics via increased precision, by replicating artisan techniques. Cheng sees AI as a tireless tool to improve efficiency and iteration in various tasks, replacing human labor in repetitive or inefficient processes.

Foxconn (Hon Hai Precision Industry) is considering a $3 billion bid for Singapore’s UTAC Holdings, a semiconductor testing and packaging firm owned by China’s Wise Road Capital, sources told CNBC. The deal, managed by Jefferies, aims to strengthen Foxconn’s chip capabilities amid U.S.-China tech tensions. UTAC’s Asia-wide production bases and $300M annual EBITDA make it a strategic acquisition target, enhancing Foxconn’s vertical integration for AI, automotive, and IoT chip demand. Analysts view the move as consolidation to counter Western semiconductor dominance and secure geopolitical leverage.