Foxconn Q2 Earnings Surge 27% as AI Server Business Booms and Apple iPhone Manufacturer Expands into EV Assembly and Semiconductors

Taiwan-based electronics giant Hon Hai Precision Industry, commonly known as Foxconn, announced a 27% year-on-year increase in Q2 operating profit, driven by the growth of its artificial intelligence (AI) server business. This surpassed the predictions of LSEG SmartEstimates, which are based on more consistently accurate analyst forecasts.

The company’s Q2 net profit stood at NT$44.36 billion, compared to the anticipated NT$38.81 billion as per LSEG SmartEstimates. As the world’s largest manufacturer of Apple iPhones, Foxconn is aiming to replicate its consumer electronics success in the AI sector.

Foxconn produces server racks tailored for AI workloads and has formed a strategic partnership with American AI chip leader Nvidia. In its Q2 earnings report, the company anticipates revenue from its AI server business to grow by over 170% year-on-year in the current quarter.

While Foxconn expects continued revenue growth in Q3, it will closely monitor the effects of “evolving global political and economic conditions.” On July 30, Foxconn announced a strategic partnership with industrial motor manufacturer TECO Electric & Machinery to build AI data centers.

Foxconn has also expressed intentions to diversify into new sectors, such as electric vehicle assembly and semiconductor manufacturing. However, potential impacts from U.S. President Donald Trump’s global tariffs may affect Foxconn’s outlook for the year. In response to tariff threats, the company has already relocated most of its U.S.-destined iPhone final production to India.