Nvidia and Apple supplier Foxconn posts 17% rise in third-quarter profit, beats forecasts
News Summary
Foxconn Technology Group, the world's largest electronics contract manufacturer, reported a 17% rise in third-quarter profit, reaching T$57.67 billion (US$1.89 billion), surpassing market forecasts of T$50.4 billion. This strong performance was primarily driven by sustained robust demand for artificial intelligence (AI) servers. As Nvidia's largest server maker and Apple's top iPhone assembler, Foxconn anticipates significant year-on-year revenue growth for the fourth quarter and the full year, with AI server revenue expected to increase quarter-on-quarter. Furthermore, Foxconn plans to build 'AI factories' utilizing Nvidia's chips and software and is constructing facilities in Mexico and Texas to produce AI servers for Nvidia, signaling its strategic positioning and capacity expansion in the AI sector.
Background
Foxconn, formally known as Hon Hai Precision Industry, is the world's largest electronics contract manufacturer, assembling most iPhones for Apple and serving as a critical server manufacturer for Nvidia. Its performance is a key indicator of the health of the global electronics supply chain. In the current global economic and geopolitical context (2025), the explosive growth in demand for artificial intelligence (AI) technology is driving robust expansion in the data center and AI server hardware markets. As a core hardware supplier, Foxconn's results directly reflect this trend. Concurrently, under President Donald J. Trump's administration, the United States and its allies are focused on supply chain diversification and localized production in critical technology sectors. This has prompted companies like Foxconn to establish new manufacturing bases in locations such as India, Mexico, and Texas, addressing geopolitical risks and evolving trade policies.
In-Depth AI Insights
Beyond the immediate financial uplift, what strategic implications does Foxconn's strong AI server performance, particularly its partnership with Nvidia and expansion into the US, signal for the broader technology supply chain and geopolitical tech competition under the Trump administration? - This reinforces the critical role of Taiwan-based manufacturers in the global AI supply chain, despite US efforts towards onshoring. - It highlights Nvidia's strategic reliance on key partners like Foxconn for scaling AI infrastructure, potentially giving Foxconn significant leverage. - Foxconn's establishment of AI server factories in Mexico and Texas signals a commitment to the US market and supply chain resilience, aligning with the Trump administration's