Amid rising global demand for AI infrastructure, Foxconn has projected strong growth in its AI server business, with shipments expected to surge significantly in the coming months.
The company said its AI server rack shipments will grow at a “high double-digit” pace sequentially in Q1. Chairman Young Liu added that for 2026, shipments could double compared to the previous year. He also said Foxconn’s AI portfolio is likely to gain a higher market share than in 2025. The company currently holds around 40% of the global AI server market.
A major growth driver will be Foxconn’s AI server production hub in the US, which is the largest of its kind in the country. The facility is expected to produce 2,000 AI server racks per week in 2026.
Foxconn reported a record annual net profit of New Taiwan dollars 189.35 billion ($5.92 billion) in 2025, marking a 24% increase from the previous year.
The company’s total sales reached $253.54 billion in 2025, up 18% from 2024. Growth was driven by strong performance in its cloud and networking and smart consumer electronics divisions.
The cloud and networking division contributed 40% of total revenue in 2025, while the smart consumer electronics division accounted for 38%. The computing division contributed 15%, and electronic components and other products made up 7%.
This is the first time the cloud and networking division has surpassed the smart consumer electronics division in terms of revenue share.
Liu said demand for AI servers remains strong despite global challenges such as tariffs, geopolitical tensions and currency fluctuations. This demand is supported by continued capital spending by major cloud service providers.
Looking ahead, Foxconn expects strong year-on-year growth in both its cloud and networking and smart consumer electronics divisions in Q1. However, the computing division may see a decline compared to Q1 2025.
Foxconn’s board has approved a cash dividend of $0.23 per share for 2025, the highest since its listing in 1991. Based on earnings per share of $0.43, the payout ratio stands at 52.9%.
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