Foxconn Expands Diversified Business Amid iPhone Sales Growth

Foxconn Expects High Double-Digit Growth in AI Server Rack Shipments

Foxconn, the world's largest contract electronics maker, is poised for significant growth in its AI server rack shipments. The company expects a "high double-digit" pace in the first quarter of 2024 and potentially double for the full year 2026, indicating a sharp acceleration in its AI push.

Key Highlights

• Foxconn's AI server market share is expected to gain traction in 2024, building on its already strong base of 40% global market share.
• The company's cloud and networking division, which includes AI servers, accounted for 40% of total sales in 2025, surpassing the smart consumer electronics segment for the first time.
• The computing division contributed 15% to total sales, while electronic components and other businesses made up the remaining 7%.

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US Manufacturing Hub to Drive Growth

Foxconn's expansion in AI is being anchored by its production capacity, particularly in the United States. The company's largest AI server manufacturing facility in the US is expected to produce about 2,000 server racks per week in 2026, positioning it to meet rising demand from cloud service providers.

Record Earnings and Strong Dividend Payout

Foxconn's push into AI comes on the back of record financial performance. The company reported a net profit of NT$189.35 billion (USD 5.92 billion) in 2025, up 24% from a year earlier. Consolidated revenue rose 18% to USD 253.54 billion, supported by growth in both its cloud and networking and smart consumer electronics segments.

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Dividend Payout

Foxconn's board approved a cash dividend of USD 0.23 per share for 2025, the highest since its listing in 1991. With earnings per share of USD 0.43, the payout ratio stands at 52.9%.