Hon Hai Precision Industry Co., widely known as Foxconn, reported record-high second-quarter consolidated sales of NT$2.51 trillion (USD 78.35 billion), driven by surging global demand for artificial intelligence servers. This represents a 39.83% increase compared to the same period last year and an 18.02% growth from the preceding quarter, according to a news report by Focus Taiwan.
Cloud and Networking Division Leads Growth
In a statement detailing the performance, Hon Hai said its cloud and networking division benefited from high demand for AI products, recording strong year-on-year sales growth in the second quarter. The manufacturer, which acts as a primary assembler for Apple Inc.'s iPhone, noted that its expansion extended beyond AI infrastructure. Its electronic components, computing, and smart consumer electronics divisions also reported significant revenue growth in the second quarter.
June Sales and First-Half Performance
For June alone, the company registered consolidated sales of NT$821.8 billion (USD 27.1 billion), marking a 52.11% jump from the previous year, though it reflected a 4.38% decline from May. The company's cumulative sales for the first half of the year reached NT$4.64 trillion (USD 153.1 billion), an increase of 34.99% year-on-year. Hon Hai currently commands an estimated 40% share of the global AI server market.
Outlook for Third Quarter
Looking forward, Hon Hai said Sunday that its third-quarter sales are likely to show quarterly and year-on-year growth, as global demand for AI server racks is expected to remain solid during that period. The company added that the second half of the year is usually the peak season for the information and communications technology industry, which will help drive Hon Hai's third-quarter sales growth.
Contrast with Largan Precision
In contrast to the growth at Foxconn, smartphone component supplier Largan Precision Co. recorded a sequential dip in its financial results. The smartphone camera lens manufacturer posted second-quarter consolidated sales of NT$13.67 billion (USD 451 million), which represents a 12.09% drop from the first quarter. Largan noted that its June sales decreased to NT$3.71 billion (USD 122.4 million), marking a 10.46% decline from last year. The company stated that the drop was due to its clients' decisions to reschedule shipments. Despite the monthly contraction, Largan's consolidated sales for the first half of the year rose 11.26% from a year earlier to NT$29.21 billion (USD 964 million).
