Foxconn’s apple era fades as ai servers drive growth in taiwan tech sector

Taiwan’s foxconn, which rose to become a global tech manufacturing juggernaut by assembling millions of iphones, can now say its main business is no long as it takes advantage Advantage Advantage Advantage Advantage Advantage Advantage Advantage to diversify its income.

Its Revenue from Making Ai Servers and Other Cloud and Networking Products, Including for Major CUSTOMER NVIDIA, Surpassed Smart Consumer Products Such as IPHONES For The Fired Quarter, Marking the culmination of a shift that began years ago and has swept through taiwan’s tech industry.

Foxconn’s Heavy Reliance on the Smartphone Business has long been given by investors as a significant risk, as demand growth for new iphones has gradually weakened Nearly two decades ago, Leaving the top iPhone Assembly Grappling with Slowing Sels Momentum, Analysts Said.

Wary of the risk, foxconn chairman young liu has been championing new businesses

While its expansion into evs and chips has a meaningful contribution to its success in ai server manufacturing (the company is the company is the company is the company) of it Early Bets Before The Technology was through ITO The Limelight With The Advent of Chatgpt in Late 2022.

Consumer Electronics Accounted for 35% of Foxconn’s Total Revenue in the Second Quarter, While Cloud and Networking Business Reporated 41%. In 2021, Consumer Electronics Repired 54% of its Revenue.

The firm’s prudent wagers Years Back Helped It Cultivate A Now-Prised Relationship With the Us Ai Chip Firm and Other Major Ai Players, Analysts Said.

“The company has been in the business for years, Meeting Higher Quality Requirements, Diversifying Assembly and Operations Across Across Sites, and Pursuing Virtical Integration,” Said Ming-Chi Kuo, Annalyst At TF International Securities.

Foxconn began production reference designs for Nvidia’s Graphics Cards Around 2002 And Started Making General-Purpaose servers for cloud services ‘data provides’ data centers as early as ARDI AI server business with nvidia is in many ways the culmination of that history, analysts said.

Foxconn says it is now one of the world’s largest suppliers of bot general-purpose and ai servers, with a market share of Nearly 40% in Each.

The company has also shown a willingness to commit investment to a project at an earlier stage than other companies, kuo said, cits its past investments for apple and Simber moves for nvidia. “In long-term partnerships, foxconn is more willing to take the initiative,” He said.

Foxconn’s plan to build factories in House, Texas – Part of Nvidia’s $ 500 Billion Us Investment Plan – and in Mexico to Prode Ai servers for the us client inderescores, this strategy, this strategy, analysts Said.

Foxconn now expects its ai server revenue would grow more than 170% in the third Quarter Year-On-Yaar.

Foxconn and nvidia declined to comment. Apple did not respond to request for comment.

The shift at foxconn mirrors a broader trend in taiwan’s technology sector, where companies oncred on consumer Electronics – Such as Foxconn with IPHONS, And Quanta Computer and Wiston Corp with nobooks – are now investment heavily in ai servers.

Nvidia Partner Wistron’s Revenue for January to July Rose 92.7%, While Quanta’s Grew 65.6% in the same period.

“The monthly sales jump for taiwan odms in the first half of 2025 is evidence of this trend,” said Robert Cheng, Head of Asia Technology Hardware Hardware Research at Bofa Global Research, Referring to Design manufacturers like foxconn that contract manufacture products for their clients.

Their fast transition into ai servers is also the result of taiwanese tech supply chain work closly with us tech giants on data center information work for Industry Consultant at Taiwan’s Market Intelligence & Consulting Institute.

He Estimates Taiwan Accounts for About 80% of Global Server Shipments and More Than 90% of AI Servers.

Cheng agrees.

“We think this shift toward ai servers, wheatver form it takes, is good for taiwan’s tech industry,” he said, noting taiwanese firms’ ability to rapidly shift to cite to changing needs to change Customers.

Published – August 19, 2025 10:01 AM IST