Foxconn Sees Strong AI Demand, Teases OpenAI Tie-Up — Update

By Sherry Qin

Foxconn Technology Group, the world's largest contract electronics maker, expects a strong year ahead as AI computing demand continues its explosive growth trajectory, and said it will collaborate with OpenAI.

Chairman Young Liu on Wednesday teased the Taiwanese company's plans to work with the ChatGPT maker, saying that an official announcement will be made at Foxconn's Tech Day next week. OpenAI didn't immediate respond to a request for comment.

The development comes as Foxconn, formally known as Hon Hai Precision Industry, has sharpened its focus on higher-growth areas, consolidating its position in the artificial-intelligence supply chain. The company, once best known for assembling iPhones for Apple, now also makes AI servers for U.S. tech giants including Amazon and Nvidia.

"The AI development is just at the beginning," Liu said on a postearnings call, adding that the company is "very optimistic" about the AI industry's development in 2026.

As a major tech hardware supplier, Foxconn will collaborate with AI companies to build the computing infrastructure, Liu said.

Foxconn earlier reported better-than-expected quarterly earnings as it continued to ramp up AI server shipments thanks to the AI boom. The company's AI server rack shipments rose 300% from the previous quarter, fueled by recent manufacturing and assembly breakthroughs. Cumulative AI server revenue reached NT$1 trillion as of the end of September, it said.

Liu said that while the company continues to monitor geopolitical developments and global monetary policies, AI will become the biggest factor in its business next year. The company wants to expand its services to include components and data centers as it looks to become the most comprehensive AI hardware supplier, he said.

Foxconn said last month that its board approved a NT$42 billion investment plan to procure equipment to build an AI computing cluster and supercomputing center. In May, the company said it was working with Nvidia to build an AI supercomputing center in Taiwan with 10,000 Nvidia Blackwell chips.

In the third quarter, Foxconn's net profit jumped 17% from a year earlier to 57.67 billion New Taiwan dollars, equivalent to US$1.86 billion, as revenue rose 11%.

Cloud and networking products--including AI servers--accounted for 42% of total revenue, remaining the company's largest business after surpassing smart consumer electronics for the first time the previous quarter.

Investors have continued to snap up Foxconn's shares. The stock, up more than 35% so far this year, hit an all-time high in late October after Liu's meetup with OpenAI's Sam Altman. Its shares have also received a boost from tech giants' recent multibillion-dollar AI deals, which have had ripple effects across the semiconductor value chain.

Write to Sherry Qin at sherry.qin@wsj.com

(END) Dow Jones Newswires

November 12, 2025 06:06 ET (11:06 GMT)