Hon Hai Precision Industry Co (鴻海精密), which assembles server racks for Nvidia Corp and iPhones for Apple Inc, yesterday said it aims to grow revenue by a double-digit percentage this year, thanks to a boom in artificial intelligence (AI)-related devices and a pickup in consumer electronics demand.
If there are no major external disruptions, this year should be “quite a good year,” supported by better-than-expected demand for consumer electronics and continued expansion in AI infrastructure investment, Hon Hai chairman Young Liu (劉揚偉) told reporters.
Demand for smartphones and other end devices remains stable, and the broader industry outlook should continue to improve, Liu said.
Photo: Ann Wang, Reuters
In the AI server segment, Hon Hai has deepened cooperation with customers in the past few years, participating not only in AI server system assembly, but also strengthening vertical integration in key components such as mechanical parts, thermal solutions and power systems, he said.
As its participation across the AI supply chain deepens, Hon Hai would gain an advantage in the next-generation AI server platform, Nvidia’s Vera Rubin AI server platform, he said.
Through stronger vertical integration with supply chain partners, Hon Hai’s overall deployment is expected to better position it for the Vera Rubin platform, he said.
Liu said he is optimistic about order share and shipments for the new platform, with results gradually materializing this year.
At the Nvidia AI global conference in California from March 16 to 19, Hon Hai plans to showcase solutions related to the new platform, including full server racks and key components such as cooling and power modules, demonstrating the company’s integrated capabilities in the AI server sector, he said.
On consumer electronics, smartphones remain one of the company’s key product lines, he said.
The company will continue to develop new products with major clients, including foldable smartphones that have drawn significant market attention, he said.
Development is ongoing, but launch timing would depend on product maturity to meet customers’ high design and quality standards, he said.
Foldable smartphones face higher technical barriers in design and manufacturing, including mechanical structure, durability and overall quality requirements, resulting in longer development cycles, Liu said, adding that the company could launch such phones depending on market demand.
Meanwhile, geopolitics and energy prices will continue to affect global economic conditions, he said.
Escalating tensions in the Middle East, for example, could push up oil prices and raise raw material costs, although the direct impact on contract manufacturers would be relatively limited, Liu said.
The bigger risk would arise if higher material costs weaken end-market demand, he said.
However, as most of Hon Hai’s customers are major global technology companies that continue to expand investments and product deployment, near-term demand momentum remains stable, he said.
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