Foxconn Sees Strong AI Demand After Q2 Profit Jump

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Photo: Reuters

Foxconn, the world’s largest company that makes electronics for other brands, has reported a big surprise in its earnings. In the second quarter of this year, the company made a profit of about T$44.4 billion, which is 27% more than it made during the same time last year. This strong growth came as a surprise to many experts, who had expected lower numbers. The reason? A sharp rise in demand for AI servers.

This growth is even more impressive because of one major shift: Foxconn’s cloud and networking department, which includes AI server production, made more money than its smartphone business for the very first time. Foxconn has been known for years as the company that assembles Apple’s iPhones, but now things are changing. The company is becoming a major name in artificial intelligence (AI) hardware.

Looking into the next few months, Foxconn expects to continue growing. It says its AI server business could grow more than 170% in the third quarter compared to the same time last year. That’s a huge increase.

However, Foxconn also knows that things like trade disagreements between countries and changes in currency values could make business more difficult. These outside factors are hard to control but can still impact the company’s earnings.

To deal with these global risks, Foxconn is making some smart moves. Most iPhones sold in the United States are still made in China, which creates concerns because of rising trade tensions. So, the company is spreading out its manufacturing.

Foxconn is now increasing iPhone production in India. At the same time, it’s also opening new factories in Mexico and Texas to build AI servers. These servers are especially important for one of Foxconn’s major customers—Nvidia, a company that makes powerful chips used in AI.

But Foxconn’s plans don’t stop there. It’s also looking into other business areas. For example, it’s been working on building electric vehicles (EVs). Recently, the company agreed to sell an old EV factory in Ohio for $375 million. However, Foxconn still plans to use the factory to make cloud and AI-related products. So, while they are selling the property, they are not completely walking away from it.

In another smart move, Foxconn has teamed up with TECO Electric & Machinery, a company that makes industrial motors. The two companies will now work together to grow their presence in data centers, which are large buildings that store information for the internet and other computer networks. This step shows how Foxconn is building a stronger base in the tech world, beyond just phones.

All of this good news has made investors happy. Foxconn’s stock has gone up by 8.4% this year so far, which is better than the overall stock market in Taiwan, which only rose by about 5.2%.

 Breaking It Down Simply

Who is Foxconn?
A giant electronics company that makes devices for other brands—most famously, Apple’s iPhones.

What just happened?
Foxconn earned 27% more profit in the second quarter than last year, thanks to a huge demand for AI servers.

Why is this important?
For the first time, the company’s AI and cloud business made more money than its smartphone business.

What’s coming next?
Foxconn expects even more growth in the third quarter, with AI server sales predicted to rise by over 170%.

What challenges do they face?

• Global trade tensions, tariffs, and currency changes could slow things down.
• What is Foxconn doing to stay strong?
• Building iPhones in India to reduce reliance on China
• Opening AI server factories in Mexico and Texas
• Selling an old EV plant in Ohio but still using it
• Partnering with TECO to grow in data centers

What do investors think?
Investors are confident. The company’s stock is doing better than the overall Taiwan market.

 Why This Matters

Foxconn is going through a major transformation. For many years, it was mostly known as the company that built Apple products, especially iPhones. But now, it’s changing its identity. It’s stepping into AI technology, cloud computing, and even electric vehicles. These aren’t small changes—they show that the company is preparing for the future of technology.

Around the world, many governments and companies are investing heavily in artificial intelligence. They need powerful servers to store, train, and run AI models. Foxconn is now one of the biggest suppliers making those servers. And that means the company is becoming a key player in the global AI boom.

At the same time, Foxconn is being smart about where it does business. By making iPhones in India, and AI servers in Mexico and Texas, it’s reducing the risk that comes with relying too much on one country. This is especially important when trade rules and global politics are constantly changing.

Foxconn isn’t stopping there. By working with TECO to build data centers, it’s helping build the future of how the internet stores and processes information. These centers are critical for businesses, schools, governments, and even personal use.

Even though Foxconn is selling a factory in Ohio, the fact that it will continue to use the site for tech work shows that the company is focused on growing the AI and cloud business, not just cars.

In short, Foxconn is no longer just the name behind your smartphone. It’s turning into a company that builds the systems powering tomorrow’s AI world.

Foxconn Q2 profit 2025