AI server orders explode! Foxconn takes advantage of AI infrastructure boom, Q4 revenue increases by 22%, reaching a historic high.

The global largest electronic product OEM manufacturer Foxconn, headquartered in Taiwan, announced record-breaking quarterly revenue data on Monday. As the largest electronic product OEM manufacturer in the world, Foxconn has benefited greatly from the unprecedented demand surge for AI products (AI servers clusters + AI smartphones, AI smart glasses, and other AI consumer electronics at the edge) especially the current wave of AI infrastructure construction that has brought exponential growth in AI server orders to Foxconn, driving quarterly revenue to new historical highs. As the largest AI server clusters contract manufacturer for "AI chip superpower" NVIDIA Corporation (NVDA.US) and the core assembler for the iPhone series products of global consumer electronics leader Apple Inc. (AAPL.US), Foxconn reported in its latest revenue statement that its fourth-quarter overall revenue increased by 22.07% compared to the same period in 2024, reaching a record NT$2.6028 trillion (approximately $82.73 billion USD). This result significantly exceeded the consensus expectation of NT$2.418 trillion from LSEG SmartEstimate; LSEG SmartEstimate gives greater forecasting weight to Wall Street analysts with historically more accurate forecasts. Foxconn stated that both quarter-over-quarter and year-over-year revenue growth were substantial in this quarter (fourth calendar quarter), exceeding market consensus expectations, setting a high base for the first quarter of 2026. In US dollars, Foxconn management stated that fourth-quarter revenue increased significantly by 26.4%. However, even considering the very high base in the fourth quarter, the market expects the incredibly strong global demand for AI server rack products to continue to drive the company's performance close to its highest growth level in the past five years. Overall, this remarkable growth was primarily driven by the strong performance of Foxconn's cloud computing and networking products department, mainly due to the increasing demand from global enterprises or government agencies for the AI server cluster products developed by that department, while the overall monthly and quarterly revenue of its intelligent consumer electronics division (including iPhone) slightly decreased due to unfavorable exchange rates. Statistics show that in December alone, Foxconn's overall revenue reached approximately NT$862.86 billion, indicating a year-on-year growth rate of 31.77%, setting a new monthly historical high for December, which is typically the strongest month for Foxconn's server and smartphone OEM manufacturing orders between October and December. The release of the Gemini3 series products brought an incredibly large volume of AI token processing, further validating the unprecedented AI deployment global trend in the early acceleration phase of infrastructure building due to the extreme shortage of computation power. Bank of America Corp stated in a research report that the global AI arms race is still in the "early to middle stages," and while popular chip stocks like NVIDIA Corporation, Broadcom Inc., have recently experienced drastic downturns, investors should continue to focus on industry leaders. Vanguard, one of the world's largest asset management giants, pointed out in a research report that the AI investment cycle may have only completed around 30%-40% of its peak. Foxconn - one of the biggest winners of the AI infrastructure boom Foxconn is known for assembling iPhones for Apple Inc., but its business has expanded to AI computation infrastructure and automobile manufacturing. Foxconn is the largest global AI server manufacturer and one of the few capable of mass-producing "customized AI server rack assemblies" for immensely large AI training/inference workloads. It is also a key supplier of NVIDIA Corporation's AI GPU computing clusters and holds a strategic importance similar to the "chip manufacturing king" Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR. The reason Foxconn has become a direct beneficiary of this unprecedented AI infrastructure boom is because the biggest increase in trillion-dollar-level AI capital expenditure not only occurs in "AI chips" but also in the delivery of complete system and rack-scale systems - server/rack integration, large-scale interconnection and wiring in data centers, cutting-edge cooling and power equipment, and other "data center hardware foundations." Foxconn is not only the largest manufacturer of NVIDIA Corporation's Hopper/Blackwell architecture AI server clusters but also the main assembler of Apple Inc.'s iPhone series products, and by 2025, its performance and order structure have already shifted significantly toward AI computation infrastructure: in company disclosures and financial media reports, the revenue share of "cloud computing and networking products (mainly around AI servers)" has risen to about 41%-42% and even exceeded consumer electronics, with AI servers becoming the core growth engine. This allows Foxconn to benefit from the large-scale deployment of NVIDIA Corporation's AI GPUs while also capturing a share of the AI training and inference system integration market ranging from AI GPUs/AI ASICs to larger systems, from server systems to AI racks. As the AI training/inference infrastructure rapidly expands, there is a strong market demand for "rapidly scalable delivery", and Foxconn's advantage lies in its global manufacturing capacity, supply chain organization, and rack-level integration delivery capabilities. The company is extending its reach into critical data center equipment (such as wiring, networks, and power systems) and has even collaborated with OpenAI in the United States to jointly design and manufacture critical AI data center equipment, further enhancing its core position in the "AI infrastructure hardware stack." According to Wall Street giants Morgan Stanley, Citigroup, Loop Capital, and Wedbush, the global AI infrastructure investment wave centered on AI chip computation power hardware is far from over, and now it is just the beginning. Under the unprecedented "AI inference end computation power demand storm" set to last until 2030, this round of AI infrastructure investment wave is expected to reach a scale of $3 trillion to $4 trillion. Soon, Foxconn will win incredibly large orders from OpenAI Previously in November, global AI leader OpenAI announced a major partnership with Foxconn. Foxconn and OpenAI will jointly design and manufacture crucial AI data center core infrastructure components in the United States. The collaboration between Foxconn and OpenAI, focusing on achieving the design and manufacturing of essential AI data center components in the United States, is one of the latest in a series of deep collaborations related to strengthening local manufacturing capabilities to meet the astronomical demand for AI computation power infrastructure from OpenAI. OpenAI and Foxconn, based in Taiwan, are collaborating to focus on designing and manufacturing crucial components for AI data centers on American soil. The partnership between Foxconn and OpenAI does not primarily focus on expanding AI GPU or AI ASIC computation hardware capacity, but on the "framework of AI data centers and fundamental infrastructure supply" like AI server racks/cabinets, power systems, high-performance network architectures and wiring, liquid cooling systems, and more. The core purpose of the cooperation is twofold - to accelerate the super-sized AI computation power infrastructure projects of OpenAI, make them more controllable and faster, and to promote the localization of data center infrastructure supply chains (American manufacturing). OpenAI has become a staunch supporter of Trump's ambition to bring manufacturing back to the USA, and this latest cooperation with Foxconn undoubtedly echoes a series of measures announced by Trump after returning to the White House aimed at strengthening the local AI computation power supply chain and reshoring manufacturing. According to media reports, the collaboration between OpenAI and Foxconn will focus on AI data center server racks/cabinets, power systems, high-performance network architecture and wiring, liquid cooling systems, and more. In other words, Foxconn's responsible for integrating all discrete components before and after inserting core computation hardware such as AI GPUs/AI ASICs into servers, ultimately creating a standardized, scalable, and domestically producible AI data center room foundation.