The third quarter revenue at Foxconn will experience a significant increase because AI server demand exceeds consumer electronics sales for the initial time. The world’s largest iPhone assembler announced Thursday that AI server sales will increase by more than 170% year-over-year because major cloud players Amazon, Microsoft and Google have placed large orders.
The second quarter revenue of Foxconn consisted of 41% servers and networking products while smart consumer devices accounted for 35%. The executives predict that electronic sales will decrease this quarter because iPhone production will decrease following the pre-tariff surge in June.
Kathy Yang who serves as the rotating CEO stated that AI has become the main factor driving growth in 2025 yet she warned about the impact of tariffs and currency fluctuations. The company will boost its capital spending by more than 20% during this year to build additional server facilities in Texas and Wisconsin.
The company reached an agreement to sell its Lordstown Ohio factory to SoftBank partner for $375 million but plans to maintain production of cloud-related products at the site. The company maintains its EV goals but will launch the Model C from Taiwan instead of the United States.
