- Foxconn's May 2025 sales hit $20.6B, up 11.92% YoY, driven by iPhone 16 demand.
- AI and cloud segments fuel growth, with Q2 2025 expected to show strong performance.
- New Houston facility and Mexico plant aim to counter U.S. tariffs, boost server production.
Foxconn Technology Group, the world's largest contract electronics manufacturer, announced that its May 2025 revenue reached NT$615.7 billion (approximately US$20.6 billion), marking an 11.92% increase year-over-year and setting a record for the highest May sales in the company's history. The surge was driven by robust demand for iPhone 16 production, boosted by China's 618 shopping holiday and competitive pricing, alongside strong performance in its AI and cloud-related segments.
Hon Hai Precision Industry Co., Ltd. said that the Cloud and Networking Products business lines, which include AI servers for customers such as Nvidia, continue to exhibit momentum and standing to achieve growth until Q2 of 2025. On the other hand, Foxconn maintained a sold outlook and stated that it would closely observe changes in the political and economic environment throughout the world, as well as rate fluctuations that may affect the future.
Despite a 3.99% month-over-month decline in May sales, Foxconn anticipates both quarter-on-quarter and year-on-year growth for Q2 2025, based on current market visibility. The company's "Smart Consumer Electronics" segment saw an increase, while declines were noted in "Computing Products" and "Components and Other Products."
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The profitability of Foxconn aligns well with its strategic shift toward AI infrastructure and diversified manufacturing. In expanding production, it includes a new plant in Houston for assembling servers for the Apple Intelligence and plans to put up a facility in Mexico to avoid potential tariff impositions by the U.S. On top of that, Foxconn is working with automakers such as Nissan, Honda, and Mitsubishi to develop next-gen software-defined electric vehicles, with its Model C electric crossover set for the first shipment to a U.S. customer later this year.
Foxconn's focus on AI servers and diversified revenue streams positions it for continued growth. The company expects its server revenue to surpass iPhone revenue within two years, reflecting the increasing importance of its cloud and networking division.