Foxconn, the world’s largest electronics manufacturer, is undergoing a significant shift in its revenue composition. The company anticipates that its server revenue will surpass its iPhone revenue within the next two years, potentially as early as this year. This projection underscores Foxconn’s strategic pivot towards AI-driven technologies, particularly in collaboration with Nvidia.
Foxconn’s AI Server Growth Strategy
During an interview at Nvidia’s annual developer conference GTC, Foxconn Chairman Young Liu highlighted the company’s increasing focus on AI server manufacturing. Foxconn is deeply involved in producing Nvidia’s AI server products, specifically the GB200 and GB300 models. This aligns with the global surge in demand for AI computing infrastructure.
Revenue Projections and Key Financial Metrics
Foxconn’s revenue growth projections reflect its commitment to the AI server market. Liu stated that the AI server revenue is expected to reach T$1 trillion (approximately $30.29 billion) in 2025, accounting for more than half of Foxconn’s total server revenue. The following table presents key revenue figures:
| Revenue Category | 2024 Share (%) | 2025 Projection (T$) |
|---|---|---|
| Smart Consumer Electronics (iPhones, etc.) | 46% | Declining Trend |
| Cloud and Networking Products | 30% | Increasing |
| AI Server Revenue | Growing | T$1 trillion ($30.29B) |
Market Drivers for Foxconn’s Transition
Foxconn’s revenue shift is driven by several key factors:
- Surging Demand for AI Infrastructure: Companies worldwide are investing heavily in AI-driven cloud computing, increasing demand for high-performance AI servers.
- Strategic Partnership with Nvidia: Foxconn’s collaboration in manufacturing Nvidia’s AI servers positions it as a critical supplier in the expanding AI market.
- Diversification Beyond Smartphones: While Apple remains a major client, Foxconn is actively expanding its business to mitigate reliance on iPhone manufacturing.
Implications for Foxconn’s Future
Foxconn’s strategic realignment towards AI and cloud computing signifies a transformative moment in its business model. With AI server revenue set to exceed that of iPhones, the company is reinforcing its position as a key player in next-generation computing technology. The ongoing demand for AI infrastructure suggests that Foxconn’s revenue diversification strategy will play a crucial role in shaping its long-term growth.
Glottis Limited 
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