Foxconn Anticipates Robust AI Server Growth with Shipments Set to Double by 2026
Foxconn, the world's largest contract electronics manufacturer based in Taiwan, has announced optimistic projections for its AI server rack shipments. According to a report by Focus Taiwan, the company expects a high double-digit sequential growth in the first quarter of 2026. This forecast underscores Foxconn's expanding role in the global artificial intelligence infrastructure market.
Chairman Young Liu Outlines Ambitious Targets for AI Portfolio
Foxconn Chairman Young Liu revealed that for the full year 2026, AI server rack shipments could double compared to 2025. He emphasized that the company's overall AI portfolio is likely to secure a higher market share than in the previous year. Currently, Foxconn holds approximately a 40 per cent share of the global AI server market, positioning it as a dominant player in this rapidly evolving sector.
A significant factor driving this growth is Foxconn's AI server production hub in the United States, which is the largest facility of its kind in the country. This hub is projected to roll out 2,000 AI server racks per week in 2026, highlighting the scale of Foxconn's manufacturing capabilities and its strategic focus on meeting rising demand.
Record Financial Performance in 2025 Supports Growth Trajectory
Liu's comments follow Foxconn's announcement of a record annual net profit in 2025, which reached New Taiwan dollars 189.35 billion (USD 5.92 billion). This represents a 24 per cent increase from the previous year, reflecting the company's strong financial health and operational efficiency.
Additionally, Foxconn's consolidated sales hit a record USD 253.54 billion in 2025, marking an 18 per cent rise from 2024. This growth was bolstered by robust performance in key divisions:
- Cloud and Networking Division: Accounted for 40 per cent of total sales, surpassing the smart consumer electronics division for the first time.
- Smart Consumer Electronics Division: Contributed 38 per cent of sales.
- Computing Division: Made up 15 per cent of revenue.
- Electronic Components and Other Products: Represented 7 per cent of sales.
Strong Demand Amid Global Economic Uncertainties
Despite challenges such as tariffs, geopolitical tensions, and currency fluctuations, demand for AI servers has remained resilient. Liu attributed this strength to continued capital expenditure expansion by major cloud service providers, which are investing heavily in AI infrastructure to support their operations and innovations.
Looking forward, Foxconn anticipates that both the cloud and networking division and the smart consumer electronics division will post strong year-on-year sales growth in the first quarter of 2026. However, the computing division may experience a decline in sales compared to the same period in 2025, indicating shifting market dynamics.
Shareholder Rewards and Future Outlook
In a move to reward investors, Foxconn's board has approved a cash dividend of USD 0.23 per share for its 2025 earnings. This payout is the highest since the company's listing in 1991, with a payout ratio of 52.9 per cent based on earnings per share of USD 0.43. This decision reflects confidence in Foxconn's financial stability and future growth prospects.
Overall, Foxconn's projections highlight its strategic focus on AI technology and its ability to capitalize on growing global demand. With plans to double shipments and expand market share, the company is poised to maintain its leadership in the electronics manufacturing industry.
