Foxconn, the world’s largest contract electronics manufacturer and a critical partner to Nvidia, has capped 2025 with a sharp surge in revenues, underscoring how the global race to build artificial intelligence infrastructure is reshaping the tech manufacturing industry.
The Taiwanese group, formally known as Hon Hai Precision Industry, reported fourth-quarter revenues of 2.6 trillion Taiwan dollars ($83 billion), a 22% jump year-on-year, comfortably beating market expectations of about NT$2.4 trillion, according to LSEG data. The strong performance was driven largely by its components and cloud-related businesses, which have become increasingly central to the company’s growth story as AI spending accelerates.
Foxconn sits at the heart of the global technology supply chain. It assembles Apple’s iPhone, produces a wide range of consumer electronics, and, crucially, manufactures the servers that house high-performance chips inside data centers. That positioning has turned it into a major beneficiary of the unprecedented capital expenditure wave sweeping through Big Tech as companies race to secure computing power for generative AI models.
Register for Tekedia Mini-MBA edition 19 (Feb 9 – May 2, 2026): big discounts for early bird.
Tekedia AI in Business Masterclass opens registrations.
Join Tekedia Capital Syndicate and co-invest in great global startups.
Register for Tekedia AI Lab: From Technical Design to Deployment (next edition begins Jan 24 2026).
In a statement, Foxconn said revenue in the final quarter of 2025 delivered “strong growth both quarter-on-quarter and year-on-year,” exceeding its own expectations and creating a high comparison base heading into early 2026. The company also flagged that earnings are likely to land near the upper end of its five-year historical range, even as it enters what is traditionally the off-season for information and communications technology products.
The numbers reflect a deeper structural shift. Demand for AI servers and so-called “AI racks” — densely packed systems designed to support Nvidia’s most advanced chips — has become a key earnings driver. These systems are far more complex and higher-margin than conventional servers, giving Foxconn exposure not just to volume growth but also to richer revenue per unit.
Investors have taken notice. Foxconn’s share price rose about 25% in 2025, building on a 76% rally the previous year, as markets increasingly priced the company less as a cyclical electronics assembler and more as a critical enabler of the AI economy.
That re-rating has been reinforced by a series of strategic moves. In November, Foxconn signed a partnership with OpenAI to collaborate on the design of next-generation AI infrastructure hardware, a deal that signals its ambition to move upstream from pure manufacturing into co-development of advanced systems. In May, it announced a separate partnership with Nvidia and the Taiwanese government to help provide infrastructure for a major AI factory in Taiwan, aligning the company closely with national efforts to anchor AI supply chains domestically.
Foxconn has also been expanding its footprint in data-center construction and power infrastructure, areas that have become increasingly important as AI workloads drive up energy consumption. In July, it said it was taking a stake in TECO Electric & Machinery Co, a move seen as strengthening its capabilities across the broader AI infrastructure stack, from servers to power and cooling systems.
While consumer electronics demand remains uneven, particularly as smartphone and PC markets mature, Foxconn’s exposure to cloud and AI investment is helping to offset those pressures. The company acknowledged that the first quarter of the year typically marks a seasonal slowdown for ICT products, but said the continued rise in AI rack shipments should provide a strong counterbalance.
The results also highlight the knock-on effects of Nvidia’s dominance in AI chips. As one of Nvidia’s key manufacturing partners, Foxconn stands to benefit directly as hyperscalers and governments pour billions into data centers built around Nvidia’s hardware. That has turned Foxconn into a bellwether not just for electronics manufacturing, but for the pace and durability of global AI investment.
Looking ahead, analysts say the main question is not whether AI demand will persist, but how concentrated it remains among a handful of suppliers. Foxconn appears, for now, firmly embedded in that ecosystem, leveraging scale, engineering depth, and strategic partnerships to capture a growing share of the AI infrastructure boom.
In that sense, the company’s blockbuster fourth quarter is less about a single strong period and more about a longer-term reset of its business.