Taiwanese tech giant Foxconn announced on Monday that its annual net profit jumped 24% from the previous year, thanks to a sharp rise in demand for its artificial intelligence servers.
The group, the world’s largest subcontractor of electronic components, recorded a net profit of 189.4 billion new Taiwan dollars (4.67 billion francs) for the year 2025.
Foxconn, also known by its official name Hon Hai Precision Industry, has called AI the “core driver” of its business.
The company, which specializes in assembling components for companies like Apple, has moved to manufacturing AI servers for Nvidia, electric vehicles and even robots.
Revenue rose 18 percent to 8.1 trillion new Taiwan dollars, narrowly beating estimates in a Bloomberg survey of economists.
The rush towards AI, and its frenzy of investments in giant data centers and the massive purchase of energy-hungry chips, continues despite signs of concern in the markets.
Foxconn announced “strong AI server demand outlook” on Monday, with “double-digit quarterly growth” expected for AI rack shipments in the first quarter of 2026.
Cloud and network services accounted for 40% of Foxconn’s business portfolio in 2025, up from 30% in 2024.
Conversely, consumer electronics declined, going from 46% to 38% of the portfolio.
If energy instability linked to the conflict in the Middle East weighs on the strategic chip industry, the impact remains “manageable” for Foxconn for the moment, according to Steven Tseng, analyst at Bloomberg Intelligence interviewed by AFP.
As the region is not a major market for AI hardware or smartphones, the risk is more on costs than on demand, due to rising oil prices and some logistical disruptions,” he stressed.
Foxconn’s cloud business, mainly driven by the growth of AI servers, “has become the group’s main source of revenue and is expected to continue to outperform the iPhone segment in the years to come,” according to the expert.
An optimism shared by analysts at the American bank JP Morgan, who designate the growth of AI servers as the “main engine” of the Taiwanese group for 2026.
Foxconn and Open AI announced in November that they had signed an agreement to design and build hardware for data centers.
