Hon Hai Precision Industry Co’s (鴻海精密) revenue rose 33 percent year-on-year last month, accelerating from the previous month thanks to demand for servers powering artificial intelligence (AI) applications.
Apple Inc’s main manufacturing partner, also known as Foxconn, reported sales of NT$548.3 billion (US$17.1 billion) — a record for August. That pace was up sharply from an annual growth of 22 percent in July.
Hon Hai’s topline has begun to recover from a protracted smartphone slump, helped by a growing business supplying data center operators with servers containing Nvidia Corp’s AI accelerators.
Photo: CNA
Last month, it said it expected revenue to grow over the rest of the year, reversing successive quarterly declines.
Some investors preach caution. Nvidia reported earnings that failed to live up to expectations, triggering a record selloff. Analysts have issued fresh warnings that AI’s potential is thus far largely untested and unproven.
Still, Hon Hai has set itself the goal of securing 40 percent of the global AI server market, relying on relationships with many of the world’s biggest tech companies and its own manufacturing expertise.
The Taiwanese company also benefits from consumer electronics demand, and the addition of AI features and enhancements might encourage mobile users to upgrade their devices. Shipments of the iPhone in China have in recent months bounced back, and the global smartphone market is recovering. Apple is preparing to unveil the iPhone 16 next week.
“Entering the peak season in the second half of the year, we anticipate our operation to gradually gain momentum,” Hon Hai said in a statement yesterday.
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