Hon Hai Precision Industry Co (鴻海精密), the world’s biggest server maker, on Thursday said that revenue this year would expand to more than NT$7 trillion (US$233.9 billion), driven by growing demand for artificial intelligence (AI) servers.
Despite uncertainties from US tariffs, exchange rates, global monetary policies and geopolitics, Hon Hai remains optimistic that it would report “significant growth” this year, attributable to robust AI server demand, Hon Hai chairman Young Liu (劉揚偉) said at the company’s annual shareholders’ meeting.
“That means [revenue] this year would exceed the NT$6.86 trillion [last year] and surpass NT$7 trillion,” Liu said.
Photo: Cheng I-hwa, AFP
Along with AI servers, stable demand for information and communications technology, and electric vehicles (EV) would also be growth drivers over the next three years, Liu said.
In response to a shareholder’s question about Hon Hai’s progress in securing new EV orders, Liu said the company expects to add a second customer in the near future and might have a third and fourth after forming a partnership with Mitsubishi Motors Corp.
Hon Hai plans to launch its new EV Model C series for the US market in the fourth quarter of this year, and a Model D in 2027, Liu said.
In response to a shareholder’s question about separating the roles of chairman and chief executive officer, Liu said the change would take place in the coming three years.
Hon Hai implemented a chief executive officer rotation system in April last year, with executives from various business units taking turns to assume the position.
These temporary chief executive officers are expected to become an official chief executive officer over time, he said.
The company last month announced that global chief campus operations officer Kathy Yang (楊秋瑾) would become the group’s next rotating chief executive officer, replacing Lin Chung-cheng (林忠正), president of Hon Hai’s e-business group.
Shareholders approved a cash dividend of NT$5.8 per share, the highest in the company’s history. That represents a payout ratio of 52.68 percent based on the company’s earnings per share of NT$11.01 last year.
Hon Hai also re-elected nine board members, including four candidates proposed as board members and five independent directors during the meeting.
Young was re-elected as chairman during a board meeting on Thursday.
Among the four board directors, Hon Hai semiconductor business strategist Chiang Shang-yi (蔣尚義) was tapped as a director for the first time. Chiang also doubles as chairman of ShunSin Technology Holdings Ltd (訊芯), a subsidiary of Hon Hai.
With this year’s Semicon Taiwan trade show set to kick off on Wednesday, market attention has turned to the mass production of advanced packaging technologies and capacity expansion in Taiwan and the US. With traditional scaling reaching physical limits, heterogeneous integration and packaging technologies have emerged as key solutions. Surging demand for artificial intelligence (AI), high-performance computing (HPC) and high-bandwidth memory (HBM) chips has put technologies such as chip-on-wafer-on-substrate (CoWoS), integrated fan-out (InFO), system on integrated chips (SoIC), 3D IC and fan-out panel-level packaging (FOPLP) at the center of semiconductor innovation, making them a major focus at this year’s trade show, according
DEBUT: The trade show is to feature 17 national pavilions, a new high for the event, including from Canada, Costa Rica, Lithuania, Sweden and Vietnam for the first time The Semicon Taiwan trade show, which opens on Wednesday, is expected to see a new high in the number of exhibitors and visitors from around the world, said its organizer, SEMI, which has described the annual event as the “Olympics of the semiconductor industry.” SEMI, which represents companies in the electronics manufacturing and design supply chain, and touts the annual exhibition as the most influential semiconductor trade show in the world, said more than 1,200 enterprises from 56 countries are to showcase their innovations across more than 4,100 booths, and that the event could attract 100,000 visitors. This year’s event features 17
EXPORT GROWTH: The AI boom has shortened chip cycles to just one year, putting pressure on chipmakers to accelerate development and expand packaging capacity Developing a localized supply chain for advanced packaging equipment is critical for keeping pace with customers’ increasingly shrinking time-to-market cycles for new artificial intelligence (AI) chips, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) said yesterday. Spurred on by the AI revolution, customers are accelerating product upgrades to nearly every year, compared with the two to three-year development cadence in the past, TSMC vice president of advanced packaging technology and service Jun He (何軍) said at a 3D IC Global Summit organized by SEMI in Taipei. These shortened cycles put heavy pressure on chipmakers, as the entire process — from chip design to mass
SEMICONDUCTOR SERVICES: A company executive said that Taiwanese firms must think about how to participate in global supply chains and lift their competitiveness Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday said it expects to launch its first multifunctional service center in Pingtung County in the middle of 2027, in a bid to foster a resilient high-tech facility construction ecosystem. TSMC broached the idea of creating a center two or three years ago when it started building new manufacturing capacity in the US and Japan, the company said. The center, dubbed an “ecosystem park,” would assist local manufacturing facility construction partners to upgrade their capabilities and secure more deals from other global chipmakers such as Intel Corp, Micron Technology Inc and Infineon Technologies AG, TSMC said. It
RSS