Foxconn's AI Revolution: Dominating Global AI Hardware with Nvidia Collaboration and U.S. Expansion
October 5, 2025
This transformation is supported by strong collaborations with Nvidia, including manufacturing over 50% of Nvidia's AI server boards and producing key GPUs like A100, H100, and others.
Hon Hai's dominance in AI hardware manufacturing impacts the global supply chain, with over 70% of AI servers worldwide being produced by the company, including hardware used by major cloud providers such as Amazon and Google.
Financial results for Q2 2025 show a 27% increase in net profit year-over-year, highlighting the company's successful pivot to AI hardware as a key revenue driver.
Looking ahead, Hon Hai plans to increase production of next-generation Nvidia chips like Blackwell, develop humanoid robots for manufacturing, and explore edge AI devices and quantum-AI hybrid systems.
Future developments include deploying more advanced AI chips, such as Nvidia's Blackwell, and integrating AI robots into manufacturing processes while tackling challenges like power management and cooling.
Hon Hai projects AI server revenues to surpass NT$1 trillion in 2025, emphasizing its strategic focus on AI infrastructure and innovation.
The company is also developing new AI data center architectures, including a project in Taiwan with 10,000 Nvidia Blackwell GPUs, and has become Taiwan's first Nvidia Cloud Partner.
Hon Hai Technology Group, also known as Foxconn, has shifted from traditional electronics manufacturing to become a major player in AI infrastructure, driven by increasing global demand for AI hardware.
The company is expanding its manufacturing footprint with new AI server assembly plants in the U.S. and Mexico, aiming to reduce geographical concentration and accelerate innovation.
Hon Hai's AI-related products, especially AI servers, have become the largest revenue segment, with a projected growth of over 170% in the third quarter of 2025, reflecting its rapid financial growth.
Experts believe that hardware innovation, including specialized accelerators and energy-efficient interconnects, will continue to boost AI capabilities, with 2025 being declared the 'AI Year' by Hon Hai's chairman.
Overall, Hon Hai's rise marks a new era in AI, underscoring the importance of hardware infrastructure in translating AI research into widespread real-world applications.
This growth aligns with broader AI industrialization trends, supporting applications in autonomous vehicles, smart manufacturing, and smart cities, while also raising concerns about environmental impacts and geopolitical risks.
Summary based on 2 sources
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Site Logo • Oct 5, 2025
AI Infrastructure Titan: Hon Haiâs Unprecedented Surge Fuels Global AI Ambitions
Site Logo • Oct 5, 2025
AI Infrastructure Titan: Hon Haiâs Unprecedented Surge Fuels Global AI Ambitions