Hon Hai's revenue in September increased by 38.4% year-on-year, with cumulative growth of nearly 40% in the first three quarters.
On October 5, Foxconn released its financial data, showing sales of TWD 1.16 trillion in September, a year-on-year increase of 38.4%. Third-quarter revenue was approximately TWD 3.027 trillion, up 47% compared to the same period last year, and above analysts’ average expectations of TWD 2.83 trillion. Cumulatively, Foxconn’s revenue for the first nine months of this year reached TWD 7.67 trillion, representing a solid growth of 39.5% compared to the previous year.
Benefiting from robust demand for artificial intelligence servers, Hon Hai Precision Industry Co., Ltd. achieved strong revenue growth in September, continuing its rapid expansion trend for the year.
On October 5, Hon Hai released financial data showing that single-month revenue in September reached TWD 1.16 trillion, marking a 38.4% year-on-year increase. Third quarter revenue was approximately TWD 3.027 trillion, or about USD 95.5 billion, a year-on-year increase of 47%, surpassing the analyst average forecast of TWD 2.83 trillion.
Looking at cumulative data, Hon Hai’s revenue for the first nine months of this year totaled TWD 7.67 trillion, with an annual growth rate of 39.5%, indicating relatively stable momentum. The company also stated that AI-related business is expected to maintain its growth trajectory in the fourth quarter.
Hon Hai’s strong revenue data is corroborated by Micron Technology’s optimistic earnings outlook released last week, further confirming that the AI investment wave has not subsided. Since the beginning of the year, Hon Hai’s share price has risen by about 10%.
Strong Demand for AI Servers Makes Hon Hai a Barometer of Industry Health
As a server assembly partner of Nvidia, Hon Hai has continued to benefit over the past two years from the global wave of cloud computing infrastructure construction.
According to Bloomberg Industry Research, with demand for AI infrastructure supporting growth, Hon Hai is expected to maintain 25% to 35% revenue and profit growth over the next few years.
Amid rising concerns among investors about excess capacity, debt escalation, and regulatory risks in the AI industry, Hon Hai’s revenue performance is viewed by the market as an important reference for assessing sector strength. The better-than-expected results resonate with Micron Technology’s latest outlook, reinforcing the market’s view that AI spending remains on an upward trajectory.
Hon Hai (also known as Foxconn) currently derives a substantial portion of its revenue from its partnership with Apple. Hon Hai is the main contract manufacturer for the iPhone, with assembly plants in both China and India.
However, Apple is actively pursuing a diversification strategy for its suppliers, and several companies, including Luxshare Precision Industry Co., Ltd., have been incorporated into its supply chain.
This portion of Apple contract manufacturing has a relatively low gross margin, creating a sharp contrast with the AI server business. How to defend the traditional contract manufacturing base while accelerating its deployment in high value-added AI infrastructure remains the core management challenge for Hon Hai.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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