Foxconn posts $82.6b Q4 sales on Apple, AI demand

Hon Hai Precision Industry, known internationally as Foxconn, reported a 22% rise in quarterly sales to NT$2.6 trillion (US$82.6 billion) for the quarter ended December, beating analyst expectations of NT$2.4 trillion (US$76.2 billion).

The Taiwan-based company, a key server assembly partner for Nvidia, is expanding its AI server production in Wisconsin and Texas.

Hon Hai’s growth comes as global tech firms ramp up data center investments amid strong demand for AI.

Major US tech firms, including Microsoft, Alphabet, Amazon, and Meta, are expected to raise capital spending by 34% to about US$440 billion over the next year, according to Bloomberg data.

Hon Hai also generates significant revenue from assembling iPhones for Apple, which saw double-digit year-on-year sales growth in the US and China with its iPhone 17 models, according to Counterpoint.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

AI servers offset iPhone swings at Hon Hai

Rack shipments for AI workloads jumped about 300% quarter over quarter in Q3 2025. Revenue from these systems has reached the trillion NT dollar mark 1.
Cloud and networking now make up 42% of revenue, ahead of smart consumer electronics like iPhone assembly 2. That marks a lasting change.
Hon Hai will invest $2–3 billion a year in AI for 3–5 years, more than half of its $5 billion capital expenditures (capex) 2.
Hon Hai moved its full-year smart consumer electronics outlook from a slight drop to flat 2. iPhone assembly margins still look tight despite higher volumes.

US suppliers can win cooling and power work as Hon Hai localizes AI

Hon Hai will add $569 million at its Mount Pleasant, Wisconsin site and expand in Texas 3. Vendors can pitch liquid-cooling tests for AI servers, high-density power shelves, and air cooling 4.
Work with OpenAI targets domestic supply for cabling and networking 3. It also covers cooling and power systems 3. This opens doors for US component makers.
Hon Hai plans 2,616 jobs and $1.2 billion in Wisconsin by 2029 5. Buyers will source local GPU or accelerator trays (hardware that speeds AI computations), optical transceivers, and Baseboard Management Controller (BMC) or secure-element modules (security chips for protecting keys and device identity) 4.
Suppliers should move on Hon Hai’s Wisconsin and Texas portals. AI rack demand could reach 50,000 to 60,000 units in 2026 1. That will require fast scaling.