The demand for artificial intelligence servers boosted Foxconn’s earnings.
The Taiwanese electronics manufacturer, best known for making iPhones, reported on Thursday that it generated 1.79 trillion New Taiwan dollars ($59.64 billion) in second-quarter revenue. The company said that its growing AI server business gave quarterly operating profit a 27% bump year-over-year, a record-high for second-quarter results.
Foxconn’s current rotating CEO Kathy Yang said in a press release that the company expects its AI server business to grow 170% year-over-year in the third quarter; the electronics maker projects that its annual AI server-related revenue will top 1 trillion New Taiwan dollars. Yang said this “sustained growth” demonstrates AI computing demand and industry momentum.
The company predicts significant growth in the third quarter as it enters what is traditionally its peak operating season, Yang said. She expects cloud and networking to be the largest drivers of business in the second half of the year, along with strong growth in smart consumer electronics.
Foxconn is the world’s largest contract electronics maker and the largest producer of Apple $AAPL’s iPhone, several outlets including CNBC and CNN reported. But tariffs have complicated the company’s relationship with Apple.
Apple said in late April that it wants to shift all production for U.S.-sold iPhones from China to India by the end of 2026 as the trade war between the U.S. and China was escalating.
So Foxconn began shipping iPhones from India to the U.S. to avoid tariffs on products from China. In June, Reuters reported that between March and May 2025, Foxconn shipped $3.2 billion worth of iPhones from India, with 97% bound for U.S. soil.
— Shannon Carroll contributed to this article.