Apple supplier Foxconn sees revenue rising as AI server demand nudges profit up

Apple’s main contract manufacturing partner, Foxconn Technology Group, said it expects revenue to grow in the current quarter and for the rest of year, after reporting a profit rise boosted by demand for servers powering artificial intelligence (AI) applications.

The Taiwan-based company, formally known as Hon Hai Precision Industry, said on Wednesday that net income in the June quarter was NT$35 billion (US$1.1 billion), largely in line with analysts’ expectations.

Revenue for the period, released earlier, surpassed estimates and came in at NT$1.55 trillion, up 19 per cent year on year. This was helped in large part by its growing business of supplying data centre operators with servers containing Nvidia’s AI accelerators.

Foxconn, Apple’s primary iPhone supplier, has set itself the goal of securing 40 per cent of the global AI server market, relying on its close relationships with many of the world’s biggest technology companies and depth of manufacturing expertise.