Taiwan’s Foxconn, once best known as the world’s largest iPhone assembler, has officially crossed a major milestone in its decades-long evolution.

The company’s revenue from manufacturing AI servers and other cloud networking products has now surpassed its earnings from consumer electronics like smartphones for the first time, marking a historic turning point not only for Foxconn but also for Taiwan’s wider tech industry.

The shift underscores how Foxconn has reduced its dependence on Apple, long its biggest client, and successfully capitalized on the artificial intelligence boom. According to company filings, cloud and networking revenues represented 41% of Foxconn’s income in the second quarter, compared with 35% from consumer electronics. In 2021, consumer electronics still made up 54% of its business, demonstrating just how quickly the transition has taken place.

The Nvidia Factor

Foxconn’s early bets on servers and data center hardware have paid off handsomely, especially as it has become the biggest manufacturer of AI servers for Nvidia, whose chips power the world’s most advanced AI systems. Foxconn first worked with Nvidia more than two decades ago on graphics card reference designs, later expanding into general-purpose servers in 2009. That foundation gave it a head start when AI demand surged after the release of ChatGPT in 2022.

Industry analysts note that Foxconn now commands nearly 40% of the global AI server market and has nurtured a long-term partnership with Nvidia by committing investments earlier than competitors. The company has already announced plans to build new AI server factories in Houston, Texas—part of Nvidia’s $500 billion U.S. investment strategy—and in Mexico to serve North American demand.

As a result, Foxconn expects its AI server revenue to surge more than 170% year-on-year in the third quarter, a pace unmatched by its smartphone business. Both Foxconn and Nvidia have declined to comment on the specifics of their partnership, while Apple has remained silent as its once-dominant role in Foxconn’s revenue mix diminishes.

The Broader Industry Shift

Foxconn’s pivot reflects a wider transformation across Taiwan’s technology sector. Firms such as Quanta Computer and Wistron, once reliant on notebook and consumer electronics assembly, have also ramped up AI server production to meet surging demand from U.S. tech giants. Data show that Wistron’s revenue jumped nearly 93% between January and July, while Quanta’s rose more than 65% over the same period.

Taiwanese manufacturers now account for roughly 80% of all global server shipments and more than 90% of AI servers, underscoring the island’s strategic importance to the digital infrastructure underpinning the AI economy. Analysts at BofA Global Research say this transition demonstrates the agility of Taiwan’s supply chain and its ability to adapt quickly to the needs of global tech leaders.

Strategic Vision Beyond iPhones

Foxconn Chairman Young Liu, who took over in 2019, has been the architect of this diversification strategy. While the company’s ventures into electric vehicles and semiconductors are still developing, the pivot into AI servers shows the results of his long-term vision to lessen Foxconn’s vulnerability to slowing smartphone sales.

“Foxconn has shown a willingness to commit capital earlier than others, both in the Apple era and now with Nvidia,” said Ming-Chi Kuo, an analyst at TF International Securities. “Its ability to meet demanding quality standards while diversifying production sites and vertically integrating operations has positioned it as an indispensable partner in the AI era.”

The shift signals more than just a change in revenue streams for Foxconn—it marks the company’s redefinition from a consumer electronics assembler into one of the world’s most important players in artificial intelligence infrastructure.

Wall Street is bracing for a pivotal Federal Reserve meeting in September, and Goldman Sachs is weighing in with a clear call.

Josh Schiffrin, the investment bank’s chief strategy officer for global banking and markets, said five-year US Treasurys remain his “favorite trade” across all asset classes ahead of what he described as an almost certain interest rate cut.

Speaking on Goldman’s The Markets podcast on Friday, Schiffrin said he sees Treasurys in the 3% to 4% yield range as particularly attractive, especially in a climate of growing economic uncertainty.

“I think of valuations with five-year sector Treasurys in the 3 and 3.25 to 4% zone as attractive,” he said. “I also think they have good characteristics to protect, should there be risk market weakness.”

The five-year yield stood at 3.83% as of Monday morning, down significantly from 4.38% at the start of the year, reflecting investor anticipation of looser policy. Schiffrin argued that short-dated government bonds will provide a shield as markets prepare for both softer economic data and the Fed’s next moves.

Betting on a September Cut

Schiffrin made it clear that he expects the Fed to ease monetary policy next month, citing weakening labor data as a key driver. The US economy added just 73,000 jobs in July, well below forecasts of 106,000, suggesting the labor market is losing steam.

“I kind of feel like it’s 25 basis points in September with a very high likelihood,” Schiffrin said. “Keeping rates unchanged is even less likely than a reduction of 50 basis points.”

His comments align with the broader market consensus. A Reuters survey of 110 economists found that 61% expect the Fed to cut its benchmark rate by a quarter percentage point to between 4% and 4.25% when policymakers meet on September 17. That would mark the first reduction of 2025 after five straight holds.

Fed Balancing Act

Chair Jerome Powell has resisted pressure to cut rates at recent meetings, citing inflation still running above the Fed’s 2% target and the need to assess the impact of earlier hikes. The central bank has kept rates steady through five consecutive meetings, most recently at the end of July.

But investors increasingly believe the Fed’s hand is being forced by cooling job growth and mounting signs of economic slowdown. Meanwhile, consumer and business confidence remains fragile, clouded further by uncertainties surrounding tariffs imposed under President Donald Trump’s trade policy.

Trump’s Pressure Campaign

The White House has been far from quiet in this debate. President Trump has openly and repeatedly called on Powell to lower rates, arguing that high borrowing costs are hurting American competitiveness. For months, Trump has taken to public rallies, social media posts, and interviews to insist that monetary easing is essential for sustaining growth.

While Powell has held his ground so far, citing the need for caution, the political spotlight on the Fed has intensified. If the central bank follows through with a September cut, it could fuel speculation that Trump’s pressure campaign is finally yielding results — even though Fed officials stress their independence.

For Goldman Sachs, the calculus is straightforward: five-year Treasurys offer both value and protection in an environment that seems to be tilting toward looser monetary conditions. Schiffrin’s comments suggest the bank expects not just one cut, but potentially a cycle of easing that could extend into 2026 if growth falters further.

However, for investors, the coming weeks will test whether the Fed bends under political and market pressure or maintains its cautious stance — a decision that could ripple across bonds, equities, and currencies worldwide.

The Nigerian Insurers Association (NIA) has unveiled its 2025 Innovation Lab, a facility designed to accelerate digital solutions and reshape insurance practice in the country.

Conceived as an intensive six-week accelerator, the lab is expected to serve as a hub where insurers and startups can bring new ideas to life, from concept through to scale, in a bid to build solutions that resonate with the realities of Nigeria’s insurance market.

At the launch in Lagos, NIA Chairman, Mr. Kunle Ahmed, described the project as more than just a facility. He said it represents a movement towards innovation and collaboration that would transform how insurers protect lives, assets, and livelihoods in Nigeria.

“This is a new phase in repositioning the industry for a technology-driven future. Today, we are not just opening a facility, we are igniting a movement, rooted in innovation, driven by collaboration, and destined to transform the way we protect lives, assets, and futures,” Ahmed declared.

Ahmed reminded the audience that at his inauguration in October 2024, he pledged to introduce an innovation challenge that would encourage creative solutions to advance the sector. The launch of the lab, he noted, was the fulfillment of that commitment.

Digital tools as the future of insurance

The NIA Chairman highlighted that Nigeria’s demographic structure—with a median age of 18 years—makes digital adoption a matter of survival for insurers. He argued that only by embracing platforms such as artificial intelligence, blockchain, data analytics, and other emerging tools can the industry improve efficiency, expand access, and rebuild trust among Nigerians who remain skeptical about insurance.

“Innovation is not a luxury. It is a necessity. The future of our industry depends on agility, inclusiveness, and digital empowerment,” Ahmed stressed, calling on regulators, technology firms, and insurance companies to back the initiative.

He urged insurers to invest in the future of the sector, innovators to seize the opportunity to test their solutions, and Nigerians at large to believe in the transformative power of innovation to secure assets and sustain standards of living.

Survey reveals industry priorities

To ensure the lab addresses real challenges, the NIA conducted a survey among 45 senior leaders drawn from across the industry, including 22 CEOs, 10 Chief Technology Officers, and 13 strategy heads in life, general, and micro-insurance.

Presenting the findings, Mr. Babatunde Fajemirokun, Chairman of the NIA Advisory Committee on Digital Innovation and IT, said the data revealed an industry eager for change.

According to him, 87 percent of executives expressed willingness to collaborate on shared solutions, while 69 percent confirmed readiness to commit resources in 2025.

“Customer experience, acquisition, KYC, and distribution rank as the top priorities for innovation. Fraud management, eKYC, and claims exchange also emerged as the most promising areas for industry-wide collaboration,” he explained.

Programme structure and timelines

Unveiling the structure of the Innovation Lab, the NIA’s Innovation Lead, Mr. Damola Oloko, explained that selected startups and scale-ups will go through a rigorous six-week accelerator programme designed to sharpen their solutions and prepare them for scale.

A pitch day is scheduled for October 7, during which shortlisted applicants will present to a jury made up of insurance companies, regulators, and industry representatives. From this process, the final five startups will be selected.

The programme will then kick off on October 13, with demo day slated for November 20. On that day, startups will present their innovations, share learnings from the programme, and showcase solutions that could be taken forward into pilot phases with the industry.

Applications opened on August 18 and will close on September 28, giving individuals and teams a six-week window to put forward their ideas.

Oloko emphasized that the lab is not just about experimentation but about scaling meaningful solutions that can help the Nigerian insurance sector overcome long-standing challenges such as low penetration, weak claims processes, and widespread mistrust among policyholders.

Context: a struggling sector in need of innovation

Insurance penetration in Nigeria remains less than 2 percent, one of the lowest in Africa, despite the country’s vast population and growing economy. For years, the industry has struggled with public apathy, inadequate distribution channels, and a lack of trust driven by slow claims settlement.

Analysts have long argued that technology holds the key to breaking these barriers, particularly through digital onboarding, micro-insurance models, and blockchain-enabled claims management. The NIA’s Innovation Lab appears to be an attempt to bridge this gap by giving startups and insurers the platform to co-create solutions.

If successful, the lab could mark a turning point for the sector, opening doors for young innovators while giving insurers a chance to rebuild confidence in the industry.